The year 2018 saw 888 Holdings face a minor decrease in their total revenue, experiencing a 2% reduction to reach $5.299 billion. This slight downturn was attributed to several elements, including heightened rivalry within the market and ongoing regulatory scrutiny.
This development did not come as a complete shock. Pazner, who assumed the role of CEO from Itai Frieberger in January 2018, had previously cautioned that the year’s results might not be exceptional.
The financial statements reflected this prediction. Their B2C poker revenue experienced a substantial decline, plummeting by 37% to $49 million. Bingo revenue also witnessed a downturn, decreasing by 17% to $32.4 million. These two factors were the principal contributors to the overall revenue contraction.
However, the situation was not entirely bleak. The 2018 World Cup provided a much-needed boost to their sports betting revenue (B2C), which observed a 6% surge, reaching $80.3 million. Casino revenue (B2C) also demonstrated positive development, expanding by 8% to hit $3.176 billion.
The company’s adjusted EBITDA experienced a healthy 6% growth, reaching $1.071 billion, while adjusted profit before tax rose by 11% to $86.7 million.
In his statement, CEO Pazner acknowledged the difficulties while emphasizing the favorable aspects: “Despite obstacles in specific segments of the business, 2018 yielded another solid financial performance, with a record EBITDA outcome.” He stressed the company’s ongoing expansion in various regulated markets, particularly in mainland Europe, driven by the robust performance of their casino and sports betting products.
Despite these encouraging indicators, market reactions were somewhat restrained. 888’s share price witnessed a modest uptick, increasing from £1.65 (approximately $2.17) to £1.67 on the day the results were made public.
