888 profit doubles in ‘landmark year’ for betting during lockdown
Betting giant 888 saw adjusted profit double last year as the company cashed in on a spike in online gambling during lockdowns around the world.
888’s group revenue swelled 52 per cent to $849.7m (£607.6m) in the 12 months to 31 December, up from $560.3 in the same period last year.
Adjusted profit before tax soared 218 per cent year-on-year to $116m, helped by a 58 per cent growth in regulated markets, as pundits took to their screens for entertainment during months of lockdown around the globe.
888 saw 63 per cent growth in UK revenues, after launching more than 700 new games in its casino business over the year.
It comes as the most recent set of coronavirus restrictions in Britain were accompanied by a spike on online gambling. Data released last month from the Gambling Commission showed the gross gambling yield among the biggest operators increased by 30 per cent between November and December.
Meanwhile, the total number of bets rose by 12 per cent and the number of active players rose by six per cent in the UK over the same period.
The group said 2020 was also a “transformational year for 888sport”, with the first-ever in-house sports betting platform launched across multiple markets.
Last year also saw the launch of Poker8 — the betting titan’s first mobile poker platform. 888 said the app “received a strong reaction from players”, and helped support 48 per cent revenue growth in its poker division.
The group noted a strong performance across the US, with three new states set to launch in 2021 that will take its American footprint to seven states in total.
888 announced a final dividend of 12c per share — up from 3c per share in 3019. It brings the total dividend for the year to 18c — triple the figure distributed in the year before.
Itai Pazner, chief executive of 888, said: “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.
“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.”
He added: “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.”