888 Holdings Navigates Challenges and Opportunities in 2018 Financial Report
The year 2018 proved challenging for 888 Holdings, as their overall earnings experienced a 2% decrease, settling at $529.9 million. This downturn was attributed to heightened rivalry and regulatory obstacles within the dynamic landscape of online gaming, as stated by the company.
These findings, unveiled in their yearly financial statement, mirrored the apprehensions voiced by 888’s chief executive, Itai Pazner, who had earlier conveyed reservations regarding the firm’s performance throughout 2018. Pazner assumed leadership from Itai Frieberger in January of that year.
A substantial portion of the revenue decline stemmed from their business-to-consumer poker offerings, which witnessed a steep 37% plunge to $49 million. Bingo, another sector within their portfolio, also faced difficulties, undergoing a 17% reduction to $32.4 million.
Nevertheless, 888 did encounter some bright spots. The FIFA World Cup, held during the summer, provided a much-needed surge to their sports wagering segment, which registered a 6% increase, reaching $80.3 million. Their casino division also demonstrated resilience, achieving an 8% expansion to attain $317.6 million.
On an encouraging note, 888’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ascended by 6% to $107.1 million, while adjusted profit before tax witnessed an 11% surge, reaching $86.7 million.
Despite the hurdles encountered in specific domains, CEO Pazner maintained an optimistic outlook, emphasizing the company’s unprecedented annual EBITDA and their continued growth across regulated markets, particularly within continental Europe. He ascribed this accomplishment to the robust performance of their casino and sports betting operations.
Intriguingly, despite the varied outcomes, 888’s stock price experienced a minor upturn on the day of the announcement, rising from £1.65 (approximately $2.17) to £1.67. This implies that investors might be clinging to the prospect of a more robust resurgence in the times ahead.