888 invoices 849 million dollars in 2020, 52% more

888 (LSE: 888), one of the world’s leading online betting and gaming companies, announces its audited financial results for the year ended 31 December 2020 (“the period”).

Financial Highlights
- Group revenue increased 52% to $849.7 million (2019: $560.3 million) - Revenue from regulated and taxed markets represented 73% of Group revenue (2019: 74%), with revenue from regulated markets increasing 58%

- B2C revenue increased 53% to $814.3 million (2019: $530.5 million), with strong growth in casino (63%), sport (36%), poker (48%) and bingo (10%)

- Adjusted EBITDA of $155.6 million (2019: $92.1 million), with the Adjusted EBITDA margin at 18.3% (2019: 16.4%)

- Adjusted profit before tax of $116.0 million (2019: $53.2 million); Profit before tax of $26.7 million (2019: $45.3 million)

- Adjusted basic earnings per share of 27.3c (2019: 13.5c), Basic earnings per share of 3.1c (2019: 11.3c) - Final dividend of 12c per share (2019: 3.0c) bringing the total for the year to 18c (2019: 6.0c)

- The Group continues to have a strong balance sheet, with cash and cash equivalents of $190 million (2019: $96.9 million)

- Continued focus on developing and improving safer gambling processes, with the launch of 888’s Safer. Better. Together strategy:

o Launch of Control Centre giving customers a one-stop-shop for safer gambling tools. The centre gives customers ground-breaking levels of transparency in real-time about their gambling activity, as well as quick and simple tools to control spend.
o Ongoing development of 888’s Observer technology, using sophisticated algorithms to flag or monitor potentially concerning customer activity
o Launch of “too much is too much” safer gambling advertising campaign across TV, social and print channels

- 58% growth in regulated markets revenue, with strong market share trends in key markets:

o 63% growth in UK revenues, reflecting strong acquisition trends across all product verticals
o 69% growth in Italy, with new customer growth of 43%, reflecting the strength of the 888 brand, and the success of its differentiated products

- Product-leadership strategy delivering strong results:

o Transformational year for 888sport, with the first-ever in-house sportsbook platform launched across multiple markets, and now delivering the majority of sports volumes. This cutting-edge sportsbook platform enables the Group to control all aspects of the sports betting proposition for the first time, enabling the Group to innovate and deploy product-centric features supporting future growth plans
o Launch of Poker8, an innovative portrait mobile-first poker platform, delivering a quicker and more intuitive experience to poker fans globally. This leading recreational poker product received a strong reaction from players, supporting 48% revenue growth during the year, and was recognised across the industry with independent awards
o Ongoing evolution of 888casino product, with the launch of over 700 new games in the year, including more than 30 exclusive games from Section8, an in-house games studio producing some of the most popular games with 888 customers.

- Data-driven investments driving strong returns:

o B2C new customer acquisition increased 42%, with a record of nearly one and a half million new members joining 888’s brands

- Platform to scale up in the US:

o Continued investment in New Jersey, with 71% revenue growth
o Three strategic market access deals, increasing the number of states where 888 has a presence to seven
o Post the period end, a multi-year extension to its exclusive B2B poker partnership with Caesars Interactive Entertainment, powering the U.S. market’s only interstate shared player liquidity poker network

Current trading & outlook

- The annualised impact of regulatory and compliance changes is currently expected to be a headwind to revenues of $70-100 million in the full year

- Strong momentum in 2021 so far, with continued positive trends in FTDs and revenue

- The Board remains confident that 888 will deliver full year revenue growth in 2021

Itai Pazner, CEO of 888, commented:

"2020 was a landmark year for 888, with our team navigating the many challenges presented by a global pandemic to deliver record financial results, and significant progress against our strategic priorities.

Our product-leadership strategy delivered outstanding results in 2020, with the launch of our ground-breaking Control Centre, our first ever in-house sportsbook, and a totally new poker platform. Our focus on delivering safe, intuitive, content-rich and entertaining products is helping us to deliver a differentiated customer experience and supporting our market share gains in key regulated markets.

We welcomed a record number of new members to our brands, nearly one and a half million, with our differentiated products and our big data supporting highly effective marketing.

We are pleased with our continued progress in the U.S., and with three new states set to launch in 2021, we are poised to see the scale benefits of our investments here. We enter 2021 with strong momentum, with a record level of customers, and with a positive reaction to our suite of new products and innovations. As a result, as well as the Group’s strengths as a product-centric, responsible, and diversified operator, the Board believes that 888 has an outstanding platform to deliver continued strategic progress during 2021 and beyond."

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