As the company gets ready to purchase the non-US assets of William Hill, the online gaming operator 888 Holdings saw a 15.4 percent increase in revenue, which brought the total to $980.1 million. Itai Paznar, the chief executive officer of 888, asserts that the scale of the company has undergone a genuine transformation since the close of 2019, as a result of the expansion that occurred on top of 2020’s revenue increase of 51.6 percent. The quantity of money brought in is not even coming close to matching the total for the previous year.
Paznar claimed that the year 2021 was a fruitful one for 888 because the company made significant progress toward its goal of become a world-renowned leader in online gambling and betting. “From a financial point of view, it was another record-setting year, and over the course of the previous two years, we have truly revolutionized the scope of the business.” This step-change in scale has come about as a result of a clear market focus on regulated markets, which now account for three quarters of revenue and are the ones in which we are experiencing extremely favorable market share trends.
888 Holdings is one of the most successful online gambling firms. They control a number of different brands and websites, including 888sport, 888casino, and 888poker. 888casino is known for having some of the greatest new slots in the United Kingdom. The company just bought William Hill and it plans to finish the transaction in the second quarter of 2022. Gibraltar is the company’s base of operations. All your banking questions answered here.
The B2C activities of the company were responsible for almost all of 888’s revenue, which totaled $941.9 million, while the B2B technologies saw growth of 7.7 percent. In the business-to-consumer market, gaming was the most important revenue generator, coming in 814.5 million dollars, while betting brought in 4.3 percent higher than the total for 2020. 888’s overall revenue was contributed substantially by the United Kingdom (40 percent). This growth comes on top of a growth of 63% from the year 2019 to the year 2020. Additionally, revenue in Italy increased by 37.1 percent, while the rest of Europe, the Middle East, and Africa brought in a total of 333.5 million euros.
The operator’s decision to stop doing business in the Netherlands had a negative effect on earnings, and the Fourth State Treaty on Gambling and the measures it imposed in Germany also had an effect. According to the statement released by the business, “The group believes Germany represents an excellent development opportunity moving forward under the new regulatory system and continues to invest to grow its brand presence there.” We intend to submit an application for a license in the Netherlands, and we are keeping our fingers crossed that we will be able to relaunch there on a regulated basis during the second half of 2022.
The revenue generated in the United States increased by 33.7 percent, reaching $125.6 million, while the income generated in the rest of the world decreased by 8.9 percent, reaching just $13.8 million. The United States contributed $22.0 million toward this total amount. The company was just granted a license to participate in the iGaming industry in Ontario, and it is scheduled to begin operations on April 4th of this year.
The company asserts that “We believe the Canada market represents an attractive long-term growth opportunity for the group,” adding that “888 can maximize its sources of competitive advantage” in this country.
After paying gaming taxes and costs of sales in the amounts of $184.0 million and $149.1 million respectively, the total amount of profit reached $647.0 million. This was an increase of 15.0 percent in comparison to the year 2020. However, costs associated with marketing increased by 29.3 percent, and operating expenses also increased by 2.8 percent. Compared to the previous year, 888’s adjusted earnings before interest, tax, depreciation, and amortization amounted to a 6.0 percent increase.
The exceptional costs totaled $24.0 million less than they were projected to be in 2020, and the majority of these costs were comprised of legal and regulatory fees connected to the acquisition of William Hill’s non-US businesses. Depreciation charges totaling $36.3 million were incurred by the company, and amortization expenses saw a 10.2 percent increase. The amount of money 888 made before taxes was $81.3 million, which is three times as much as it made in 2020. In spite of the increased earnings, the tax burden was lighter in 2020.
In spite of the challenging year, 888 decided to purchase the non-US assets of William Hill, which Caesars had previously purchased with the intention of selling off all of William Hill’s activities save for the ones in the US. 888 felt that this transaction would result in a threefold increase in the size of their company, which would imply a total revenue of more than $2.5 billion. 888 also made an announcement regarding the debut of their SI-branded sportsbook, which the company plans to extend to further states in the year 2022. 888 also divested themselves of their bingo operations in the year 2021.
Paznar asserts that “given this strong financial and operational performance, the board remains confident that, with 888’s advanced technology, products, and diversification across markets, the group is well-positioned to deliver long-term sustainable growth for all its stakeholders into the future.” Paznar is referring to the fact that the company has had a strong performance both financially and operationally.
The United Kingdom Gambling Commission recently levied a fine of Â£9.4 million against 888 after the company was found to have violated a number of regulations pertaining to social responsibility and anti-money laundering. Regarding this monetary penalty, Paznar is quoted as saying, “this is something that I would say is something that we as a corporation are not proud of.” This is not a joyful moment for us in the history of 888 because we do consider ourselves to be a responsible operator who places a high priority on ensuring the safety of our customers and complying to the industry’s top standards. We acknowledge that at the time we had some policies in place that did not function as well as they should have, and we regret those policies very much. But we have been working hard to fix those issues as rapidly as we possibly could.