888 Holdings PLC — Earnings Release 2014

Apr 10, 2014

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 4863E

888 Holdings plc

10 April 2014

10 April 2014                                                                                

888 Holdings Public Limited Company

("888" or "the Group")

Interim Management Statement

Q1 2014 Key Performance Indicators and Interim Management Statement*

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 January 2014 to the date of this announcement, incorporating the Group's first quarter trading period from 1 January 2014 to 31 March 2014.

Q1 Highlights

·      Group quarterly revenue reached a record of US$114 million (Q1 2013: US$103 million), an increase of 11% year on year and a 7% increase compared to the strong Q4 2013

·      Revenue B2C at US$98 million (Q1 2013: US$92 million), an increase of 7% year on year

·      Revenue B2C Casino at US$54 million (Q1 2013: US$48 million), an increase of 14% year on year, leveraging strong customer acquisition in Q4 2013

·      Revenue B2C Poker at US$25 million (Q1 2013: US$24 million), an increase of 4% year on year

·      Revenue B2C Bingo at US$12 million (Q1 2013: US$12 million), an increase of 2% year on year and a 9% increase over Q4 2013

·      Revenue B2B at US$16 million (Q1 2013: US$11 million), an increase of 43% compared to Q1 2013 and a 13% increase over Q4 2013 primarily driven by Bingo and our US operations

·      Number of active customers B2C Casino and Poker at 682,000 (Q1 2013: 634,000), an increase of 7% compared to Q1 2013

·      In February 2014, the states of Delaware and Nevada signed an interstate compact whereby poker liquidity can be pooled, strongly positioning 888 to gain from increased liquidity

Commenting on today's announcement Brian Mattingley, Chief Executive Officer, said:

"I am pleased to report that Q1 was another strong quarter for 888, resulting in record quarterly revenue for the Group. Our market-leading brands and excellent product offering, underpinned by our innovative marketing and CRM capabilities, has driven further growth in our core markets. Furthermore, 888 continues to be well positioned to capitalise on positive regulatory developments."

* All percentages in this release are calculated without rounding

Key Performance Indicators

Q1 2014

Group

·      Revenue at US$114 million (Q1 2013: US$103 million), a year on year increase of 11%

·      As at 31 March 2014, 888 had 16.3 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 18% from 31 March 2013

B2C

·      Revenue B2C at US$98 million (Q1 2013: US$92 million), a year on year increase of 7%

·      Revenue B2C Casino at US$54 million (Q1 2013: US$48 million), a year on year increase of 14%

·      Revenue B2C Poker at US$25 million (Q1 2013: US$24 million), a year on year increase of 4%

·      Revenue B2C Bingo at US$12 million (Q1 2013: US$12 million), a year on year increase of 2%

·      Revenue B2C Emerging Offering at US$6 million (Q1 2013: US$8 million), a year on year decrease of 22% and a 4% increase against Q4 2013

·      Number of active customers B2C Casino and Poker at 682,000 (Q1 2013: 634,000), an increase of 7% compared to Q1 2013

·      Number of active customers B2C Casino at 226,000 (Q1 2013: 236,000), a decrease of 4% compared to Q1 2013

·      Number of active customers B2C Poker at 537,000 (Q1 2013: 474,000), an increase of 13% compared to Q1 2013

·      Quarterly revenue B2C per active Casino and Poker customer was US$117 (Q1 2013: US$113), a 3% increase year on year

·      Quarterly revenue B2C per active Casino customer was US$240 (Q1 2013: US$202), a 19% increase year on year

·      Quarterly revenue B2C per active Poker customer was US$47 (Q1 2013: US$52), a 9% decrease year on year

Dragonfish

·      Revenue B2B at US$16 million (Q1 2013: US$11 million), an increase of 43% year on year primarily driven by Bingo and our US operations

Current Trading

Trading during the second quarter to date has continued to be strong and in line with the trends seen in the first quarter.

As at 4th April 2014, the Group had US$131 million of cash and cash equivalents and US$56 million liabilities to customers.

Analyst and Investor Conference Call

There will be an analyst and investor conference call at 11.30am today.

Dial-in number:	+44(0)20 3427 1929
Passcode:	9179968
Replay number:	+44(0)20 3427 0598
Replay passcode:	9179968

Contacts and enquiries

888
Brian Mattingley, Chief Executive Officer	+350 200 49800
Aviad Kobrine, Chief Financial Officer	+350 200 49800
Hudson Sandler	+44(0) 207 796 4133
Alex Brennan / Michael Sandler

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$m*	2013				2014
Q1	Q2	Q3	Q4	Q1
B2C Revenue
Casino	47.6	46.5	45.4	50.9	54.3
Poker	24.4	22.5	22.0	24.7	25.3
Bingo	11.9	10.2	10.4	11.1	12.1
Emerging Offering	7.9	6.0	4.7	5.9	6.1
Total  Revenue B2C	91.8	85.2	82.5	92.7	97.8
B2C KPI
Revenue Casino US$m	47.6	46.5	45.4	50.9	54.3
Active Players Casino (000)	235.5	185.8	172.1	198.9	226.1
Revenue Casino per active player US$	$ 202	$ 250	$264	$256	$240
Revenue Poker US$m	24.4	22.5	22.0	24.7	25.3
Active Players Poker (000)	473.6	409.8	385.1	472.5	537.1
Revenue Poker per active player US$	$ 52	$ 55	$ 57	$ 52	$ 47
Revenue Casino & Poker US$m	72.0	69.0	67.4	75.6	79.6
Active  Players Casino & Poker (000)	634.4	534.7	498.3	601.7	681.8
Revenue Casino & Poker per active player US$	$ 113	$ 129	$ 135	$ 126	$ 117
B2B Revenue
Revenue B2B	11.2	11.9	11.2	14.1	16.0
Revenue	102.9	97.1	93.7	106.8	113.8

*Rounded.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IMSUKUWRSSASRAR