04 February 2013
888 Holdings Public Limited Company
("888" or "the Group")
Interim Management Statement
Q4 2012 Key Performance Indicators and Trading Update*
888, one of the world's most popular online gaming entertainment and solutions providers, is today publishing its Interim Management Statement for the period from 1 October 2012 to the date of this announcement, incorporating the Group's fourth quarter trading period from 1 October 2012 to 31 December 2012.
Highlights
· Group revenue US$97 million (Q4 2011: US$91 million), an increase of 7% year on year
· Revenue B2C US$86 million (Q4 2011: US$79 million), an increase of 9% year on year
· Revenue B2C Casino US$44 million (Q4 2011: US$42 million), an increase of 6% year on year
· Revenue B2C Poker US$24 million (Q4 2011: US$19 million), an increase of 31% year on year driven by the strength of our product and our successful marketing efforts
· Group revenue for full year 2012 of US$376 million (2011: US$331 million), an increase of 13% year on year
· Number of active customers B2C Casino and Poker at 520,000 (Q4 2011: 478,000), a 9% increase year on year
· As at 31 December 2012, 888 had 13.1 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 23% since 31 December 2011
Commenting on today's announcement Brian Mattingley, Chief Executive Officer, said:
"The quarter ended an excellent year of performance for 888, as we achieved record revenues in both the quarter and the year as a whole. This success was driven by our core Casino and Poker offerings, as well as our activities in newly regulated markets.
Our success in Spain and Italy shows that we have the right product and technology led marketing to make significant inroads into new markets, and we will look to repeat that success in other regulating territories.
In addition we are experiencing a significant increase in customer recruitment and revenue from mobile platforms and, given our focus and commitment to investment in mobile, see this is as just the beginning of an increasing trend. 2013 has started strongly and we therefore remain confident of future growth."
* All percentages in this release are calculated without rounding
Key Performance Indicators
Fourth Quarter 2012
Group
· Revenue US$97 million (Q4 2011: US$91 million), an increase of 7%
· As at 31 December 2012, 888 had 13.1 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 23% since 31 December 2011
B2C
· Revenue B2C at US$86 million (Q4 2011: US$79 million), an increase of 9%
· Revenue B2C Casino at US$44 million (Q4 2011: US$42 million), an increase of 6%
· Revenue B2C Poker at US$24 million (Q4 2011: US$19 million), an increase of 31%
· Revenue B2C Bingo at US$12 million (Q4 2011: US$13 million), a decrease of 11% as a result of challenging and competitive market conditions
· Revenue B2C Emerging Offering at US$6 million (Q4 2011: US$6 million), a decrease of 3% mainly as a result of weak sport margins in December which have now reverted to historical levels
· Number of active customers B2C Casino and Poker at 520,000, an increase of 9% compared to Q4 2011
· Number of active customers B2C Casino at 196,000, a decrease of 12% compared to Q4 2011
· Number of active customers B2C Poker at 390,000, an increase of 22% compared to Q4 2011
· Quarterly revenue B2C per active Casino and Poker customer was US$132, a 5% increase compared to Q4 2011
· Quarterly revenue B2C per active Casino customer was US$226, a 22% increase compared to Q4 2011
· Quarterly revenue B2C per active Poker customer was US$62 a 7% increase compared to Q4 2011
Dragonfish
· Revenue B2B at US$12 million (Q4 2011: US$12 million), a decrease of 3% year-on-year
Full year ended 31 December 2012
· Revenue up 13% to US$376 million (2011: US$331 million)
B2C
· Revenue B2C up 16% to US$330 million (2011: US$284 million)
· Revenue B2C Casino up 12% to US$165 million (2011: US$148 million)
· Revenue B2C Poker up 44% to US$88 million (2011: US$61 million)
· Revenue B2C Bingo down 4% to US$52 million (2011: US$54 million)
· Revenue B2C Emerging Offering up 16% to US$25 million (2011: US$22 million)
Dragonfish
· Revenue B2B down 2% to US$46 million (2011: US$47 million)
Current Trading
The first quarter of 2013 has started well, continuing the strong performance of 2012, with daily average revenue during January more than seven percent above January 2012, coupled with a strong increase in customer deposits, bets and customer acquisition levels. The high performance is driven primarily by Poker and newly regulated markets and is leveraged by our recent successful targeted marketing campaigns, ongoing focus on customer retention and increased investment in our mobile offering.
As at 31st January 2013 the Group had US$88 million of cash and cash equivalents and US$48 million liabilities to customers.
Analyst and Investor Conference Call
There will be an analyst and investor conference call at 10.30am (GMT) today.
Dial-in number: |
+44 (0)20 3140 8286 |
Passcode: |
9034276 |
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Replay number: |
+44 (0)20 3427 0598 |
Replay passcode: |
9034276 |
Contacts and enquiries
888 |
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Brian Mattingley, Chief Executive Officer |
+350 200 49800 |
Aviad Kobrine, Chief Financial Officer |
+350 200 49800 |
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M:Communications |
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Ann-marie Wilkinson/Andrew Benbow |
+44 (0)20 7920 2344 |
This announcement includes statements that are, or may be deemed to be, "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement reflect 888's view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, 888 undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.
Appendix
US$m* |
2011 |
2012 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
B2C Revenue |
|
|
|
|
|
|
|
|
Casino |
33.4 |
35.6 |
37.5 |
41.6 |
42.2 |
40.9 |
38.2 |
44.2 |
Poker |
11.3 |
12.7 |
18.1 |
18.5 |
21.2 |
20.1 |
21.9 |
24.3 |
Bingo |
14.2 |
13.3 |
13.3 |
13.1 |
13.6 |
13.4 |
13.3 |
11.6 |
Emerging Offering |
5.4 |
4.8 |
5.4 |
5.9 |
6.2 |
6.1 |
6.9 |
5.8 |
Total Revenue B2C |
64.4 |
66.4 |
74.3 |
79.1 |
83.2 |
80.5 |
80.3 |
85.9 |
|
|
|
|
|
|
|
|
|
B2C KPI |
|
|
|
|
|
|
|
|
Revenue Casino US$m |
33.4 |
35.6 |
37.5 |
41.6 |
42.2 |
40.9 |
38.2 |
44.2 |
Active Players Casino (000) |
129.5 |
159.2 |
200.4 |
223.8 |
227.8 |
185.0 |
158.5 |
195.9 |
Revenue Casino per active player US$ |
$ 258 |
$ 223 |
$ 187 |
$ 186 |
$ 185 |
$ 221 |
$ 241 |
$ 226 |
|
|
|
|
|
|
|
|
|
Revenue Poker US$m |
11.3 |
12.7 |
18.1 |
18.5 |
21.2 |
20.1 |
21.9 |
24.3 |
Active Players Poker (000) |
221.9 |
231.3 |
307.2 |
318.3 |
405.3 |
377.6 |
349.5 |
389.7 |
Revenue Poker per active player US$ |
$ 51 |
$ 55 |
$ 59 |
$ 58 |
$ 52 |
$ 53 |
$ 63 |
$ 62 |
|
|
|
|
|
|
|
|
|
Revenue Casino & Poker US$m |
44.7 |
48.2 |
55.6 |
60.1 |
63.4 |
61.0 |
60.1 |
68.5 |
Active Players Casino & Poker (000) |
302.3 |
342.0 |
442.1 |
477.5 |
566.4 |
504.9 |
453.7 |
520.5 |
Revenue Casino & Poker per active player US$ |
$ 148 |
$ 141 |
$ 126 |
$ 126 |
$ 112 |
$ 121 |
$ 133 |
$ 132 |
|
|
|
|
|
|
|
|
|
B2B Revenue |
|
|
|
|
|
|
|
|
Revenue B2B |
10.9 |
12.1 |
11.9 |
12.0 |
11.2 |
11.6 |
11.6 |
11.6 |
|
|
|
|
|
|
|
|
|
Revenue |
75.3 |
78.5 |
86.2 |
91.1 |
94.4 |
92.1 |
91.9 |
97.5 |
*Rounded.
As of 1st January 2012, as part of the Group's effort to match the poker network's player environment to the requirements of target customers, the Group took over certain poker B2B brands, the performance of which was previously reported as part of B2B and is now reported as part of B2C.The pro-forma figures excluding the effects of this for Q4 2012 are as follows: Q4 2012 B2C Poker revenue US$22.2 million, an increase of 20% compared to Q4 2011, Q4 2012 B2C revenue US$83.8 million, an increase of 6% compared to Q4 2011, Q4 2012 B2B revenue US$12.4 million, an increase of 3% compared to Q4 2011 and Q4 2012 group revenue US$96.1 million, an increase of 5% compared to Q4 2011.
