Q2 2021 Post Close Trading Update

7 July 2021

888 Holdings Plc

("888" or "the Group")

Q2 2021 Post Close Trading Update

Revenue growth of 10% driven by further expansion across major markets

888 (LSE: 888), one of the world's leading online betting and gaming companies, today announces a post-close trading update for the three months ended 30 June 2021 (the "Period"). Comparative figures in this Trading Update are provided in US$ on a year-on-year basis and in constant currency against Q2 2020, unless otherwise stated.

Q2 2021 Highlights

·    Revenue growth of 10%, driven by continued success of the Group's product-leadership strategy, long-term positive customer acquisition trends, and continued expansion in regulated markets.

·      Growth driven by regulated and taxed markets, which contributed 74% of revenue (Q2 2020: 73%), with strong performances in the UK, Italy, Spain, Romania and Portugal offset by the impact of the new regulation in Germany.

·      B2C revenue increased 11%, led by Casino (13%) and Sport (94%), with Sport growth boosted by a reduced number of sporting events in the prior year period.

·      Poker and Bingo revenues were lower than the prior year, reflecting exceptionally strong performance during the prior year period.

·      Strategic partnership with Sports Illustrated to provide 888 with a platform for strong U.S. growth.

·      The German regulator awarded a sports-betting licence to 888, reinforcing 888's position as one of the most-licensed global online betting and gaming companies.

·      Continued strong cash generation and robust balance sheet.

The Group intends to release its interim results for the six months ended 30 June 2021 on 1 September 2021.

Outlook

The second quarter of the year was slightly ahead of Board expectations, reflecting continued momentum in the business, and favourable exchange rate movements. For the second half of the year, the Board remains mindful of the potential impact of greater than normal seasonality in the summer post COVID-19, retail and leisure venues reopening across international markets, and the previously disclosed expected impact of regulatory and compliance changes, which are weighted towards the second half of the year. Since 17 May, when UK retail and leisure venues reopened, average daily revenues in the UK have, as expected, been approximately 20% lower than the year-to-date period before that.

The Group continues to increase investment in product and marketing to support its long-term growth plans, including increased investment in its US B2C business, highlighted by the recently announced partnership with Sports Illustrated to launch SI Sportsbook, and increased investment in Germany following the award of a sports-betting licence. The Board expects adjusted EBITDA for the full year to be slightly ahead of the prior year, despite the increased investments in the business.

Itai Pazner, CEO of 888, commented:

"I am pleased to report that the strong momentum from the first quarter of 2021 continued into the second quarter, albeit with the year-on-year growth rate moderating in light of stronger comparables from the prior year. Growth was driven primarily by regulated markets, where we believe ongoing market share gains continue to reflect our product-leadership strategy, highly effective data-driven marketing, and our excellent content.

In addition to strong trading across our core European markets, we made significant strategic progress during the period in the attractive US market, where we announced a long-term strategic partnership with Sports Illustrated. We look forward to launching SI Sportsbook as a key pillar of our strategy to drive increased growth in the US.

The Board remains confident that, with 888's advanced technology, products and diversification across markets, the Group remains well positioned to deliver further strategic progress during 2021 and beyond."

- Ends -

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About 888 Holdings Plc:

888 Holdings plc (and together with its subsidiaries, "888" or the "Group") is one of the world's leading online betting and gaming companies. 888's mission is to develop state-of-the-art technology and products that provide fun, fair and safe digital gambling products to players globally. Safer gambling is a core focus for the Group and, at the beginning of 2020, 888 launched its 'Safer. Better. Together' safer gambling strategy and commitments.

888 has been at the forefront of the online gaming industry since its foundation in 1997, leveraging its proprietary technology to provide players and B2B partners an innovative and world-class online gaming experience.

In 2020, the company was proud to be recognised at the 2020 Gaming Intelligence awards as the winner in the Casino Operator of the Year category. In 2020, 888 also won two prestigious awards for its poker platform at the 2020 Poker Listings Operator Awards in the Most Improved Software and Best Beginner Software categories.

The Group is structured into two lines of business: B2C, under the 888 brands, and B2B, conducted through Dragonfish, which provides partners a leading platform through which to establish an online gaming presence and monetise their own brands in a safe and responsible manner.

888's consumer facing websites offer more than just online betting and gaming. They are entertainment destinations: places where people can enjoy a truly interactive experience and be part of an online community that shares common interests. 888's strong and trusted brands are all accessible through www.888.com.

Find out more about 888 at http://corporate.888.com/.