6 August 2013
888 Holdings Public Limited Company
("888" or "the Group")
Interim Management Statement
Q2 2013 Key Performance Indicators and Trading Update*
Agreement signed with Caesars Interactive Entertainment in New Jersey
888, one of the world's most popular online gaming entertainment and solutions providers, is pleased to provide the following trading update for the second quarter of 2013.
Q2 & H1 Highlights
· Q2 Group revenue at US$97 million (Q2 2012: US$92 million), an increase of 5% year on year
· Q2 revenue B2C at US$85 million (Q2 2012: US$80 million), an increase of 6% year on year
· Q2 revenue B2C Casino at US$47 million (Q2 2012: US$41 million), an increase of 14% year on year supported by growth in our newly regulated markets coupled with successful customer retention operations
· Q2 revenue B2C Poker at US$22 million (Q2 2012: US$20 million), an increase of 12% year on year demonstrating our continued ability to provide a recreational healthy poker environment
· Record Group revenue in H1 2013 of US$200 million (H1 2012: US$186 million), an increase of 7% year on year
· H1 2013 Revenue B2C at US$177 million (H1 2012: US$164 million), an increase of 8% year on year
· 535,000 active B2C Casino and Poker customers as at 30 June 2013 (30 June 2012: 505,000), a 6% increase year on year
· Agreement signed with Caesars Interactive Entertainment (CIE) through the Group's All American Poker Network (AAPN) joint venture with Avenue Capital allowing 888 to offer own-branded poker and casino products in New Jersey, subject to required regulatory approvals
Commenting on today's announcement Brian Mattingley, Chief Executive Officer, said:
"We are pleased with 888's continued progress in our core markets and products. The Group has enjoyed excellent growth, particularly in Casino where a combination of strong results in Spain and Italy and very successful marketing campaigns have driven up revenue in Q2 by 14% year on year.
The Group remains focused on preparing our platforms and marketing for the incredibly exciting US opportunity and we are delighted to announce today the agreement we have signed with Caesars Interactive Entertainment through our AAPN joint venture with Avenue Capital. This is an important development in our US strategy which will allow 888 to offer 888-branded poker and casino products in New Jersey, subject to required regulatory approvals. We are extremely well positioned in the US and are working with the regulators in Nevada, Delaware and New Jersey as these three states become ready to open."
* All percentages in this release are calculated without rounding
Key Performance Indicators
Second Quarter 2013
Group
· Revenue at US$97 million (Q2 2012: US$92 million), an increase of 5%
· As at 30 June 2013, 888 had 14.4 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 19% since 30 June 2012
B2C
· Revenue B2C at US$85 million (Q2 2012: US$80 million), an increase of 6%
· Revenue B2C Casino at US$47 million (Q2 2012: US$41 million), an increase of 14%
· Revenue B2C Poker at US$22 million (Q2 2012: US$20 million), an increase of 12%
· Revenue B2C Bingo at US$10 million (Q2 2012: US$13 million), a decrease of 23%
· Revenue B2C Emerging Offering at US$6 million (Q2 2012: US$6 million), a decrease of 2%
· Number of active customers B2C Casino and Poker at 535,000 (Q2 2012: 505,000), an increase of 6% compared to Q2 2012
· Number of active customers B2C Casino at 186,000 (Q2 2012: 185,000), an increase of 0.5% compared to Q2 2012
· Number of active customers B2C Poker at 410,000 (Q2 2012: 378,000), an increase of 9% compared to Q2 2012
· Quarterly revenue B2C per active Casino and Poker customer was US$129 (Q2 2012: US$121), a 7% increase compared to Q2 2012
· Quarterly revenue B2C per active Casino customer was US$250 (Q2 2012: US$221), a 13% increase compared to Q2 2012
· Quarterly revenue B2C per active Poker customer was US$55 (Q2 2012: US$53) a 3% increase compared to Q2 2012
Dragonfish
· Revenue B2B at US$12 million (Q2 2012: US$12 million), an increase of 2% compared to Q2 2012
Six months ended 30 June 2013
Group
· Revenue up 7% to US$200 million (H1 2012: US$186 million)
B2C
· Revenue B2C up 8% to US$177 million (H1 2012: US$164 million)
· Revenue B2C Casino up 13% to US$94 million (H1 2012: US$83 million)
· Revenue B2C Poker up 13% to US$47 million (H1 2012: US$41 million)
· Revenue B2C Bingo down 18% to US$22 million (H1 2012: US$27 million)
· Revenue B2C Emerging Offering up 13% to US$14 million (H1 2012: US$12 million)
Dragonfish
· Revenue B2B up 1% to US$23 million (H1 2012: US$23 million)
US
The Group announces today that, through its AAPN joint venture with Avenue Capital, it has signed an agreement with Caesars Interactive Entertainment (CIE) that will allow 888 to offer its 888-branded poker and casino products in New Jersey, subject to required regulatory approvals.
Current Trading
The third quarter of 2013 has begun in line with our expectations, reflecting historical seasonal patterns. Daily average revenue during the first 33 days of the quarter is comparable to the previous year. Our performance is led by Casino with Bingo continuing to be a challenging and competitive market.
We now have a new sports book provider on board and we are seeing good growth in 888sport, an area we remain committed to improving.
As at 2nd August 2013 the Group had US$87 million of cash and cash equivalents and US$52 million liabilities to customers.
We remain confident of continued progress and of meeting full year expectations.
Analyst and Investor Conference Call
There will be an analyst and investor conference call at 10.30am (BST) today.
Dial-in number: |
+44(0)20 3427 1909 |
Passcode: |
5088805 |
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Replay number: |
+44(0)20 3427 0598 |
Replay passcode: |
5088805 |
Half-Yearly Results
888 will announce its half-yearly results for the six months ended 30 June 2013 on 28 August 2013.
Contacts and enquiries
888 |
|
Brian Mattingley, Chief Executive Officer |
+350 200 49800 |
Aviad Kobrine, Chief Financial Officer |
+350 200 49800 |
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Hudson Sandler |
+44(0) 207 796 4133 |
Kate Hoare |
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Alex Brennan |
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Michael Sandler |
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This announcement includes statements that are, or may be deemed to be, "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement reflect 888's view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, 888 undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.
Appendix
US$m* |
2012 |
2013 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
B2C Revenue |
|
|
|
|
|
|
Casino |
42.2 |
40.9 |
38.2 |
44.2 |
47.6 |
46.5 |
Poker |
21.2 |
20.1 |
21.9 |
24.3 |
24.4 |
22.5 |
Bingo |
13.6 |
13.4 |
13.3 |
11.6 |
11.9 |
10.2 |
Emerging Offering |
6.2 |
6.1 |
6.9 |
5.8 |
7.9 |
6.0 |
Total Revenue B2C |
83.2 |
80.5 |
80.3 |
85.9 |
91.8 |
85.2 |
|
|
|
|
|
|
|
B2C KPI |
|
|
|
|
|
|
Revenue Casino US$m |
42.2 |
40.9 |
38.2 |
44.2 |
47.6 |
46.5 |
Active Players Casino (000) |
227.8 |
185.0 |
158.5 |
195.9 |
235.5 |
185.8 |
Revenue Casino per active player US$ |
$ 185 |
$ 221 |
$ 241 |
$ 226 |
$ 202 |
$ 250 |
|
|
|
|
|
|
|
Revenue Poker US$m |
21.2 |
20.1 |
21.9 |
24.3 |
24.4 |
22.5 |
Active Players Poker (000) |
405.3 |
377.6 |
349.5 |
389.7 |
473.6 |
409.8 |
Revenue Poker per active player US$ |
$ 52 |
$ 53 |
$ 63 |
$ 62 |
$ 52 |
$ 55 |
|
|
|
|
|
|
|
Revenue Casino & Poker US$m |
63.4 |
61.0 |
60.1 |
68.5 |
72.0 |
69.0 |
Active Players Casino & Poker (000) |
566.4 |
504.9 |
453.7 |
520.5 |
634.4 |
534.7 |
Revenue Casino & Poker per active player US$ |
$ 112 |
$ 121 |
$ 133 |
$ 132 |
$ 113 |
$ 129 |
|
|
|
|
|
|
|
B2B Revenue |
|
|
|
|
|
|
Revenue B2B |
11.2 |
11.6 |
11.6 |
11.6 |
11.2 |
11.9 |
|
|
|
|
|
|
|
Revenue |
94.4 |
92.1 |
91.9 |
97.5 |
102.9 |
97.1 |
*Rounded.
