The year 2018 saw 888 Holdings experience a minor decrease in earnings, experiencing a 2% decline to $529.9 million. This downturn can be linked to heightened competition within the market and amplified regulatory oversight, creating a more challenging environment for the company to function with the same ease it once did.
Itai Frieberger, who previously held the position of CEO, resigned in January and was succeeded by Pazner. In a private discussion with Gambling Insider, Pazner acknowledged that 2018 had been an underwhelming year for 888.
The company’s fiscal statement mirrored this view. Their business-to-consumer poker revenue experienced a substantial decline, plummeting by 37% to $4.9 million. Bingo earnings also faced difficulties, decreasing by 17% to $3.24 million.
Nevertheless, the situation was not entirely bleak. The occurrence of the FIFA World Cup provided a much-needed boost to 888’s sports wagering division, which witnessed a 6% rise in earnings, reaching $80.3 million. Casino revenue also displayed encouraging indicators, expanding by 8% to $317.6 million.
Despite the obstacles encountered, 888’s adjusted earnings before interest, taxes, depreciation, and amortization climbed by 6% to $107.1 million, and adjusted profit before tax saw an 11% increase, reaching $86.7 million.
CEO Pazner emphasized the favorable aspects, stating, “2018 yielded robust financial outcomes with unprecedented EBITDA, notwithstanding difficulties in certain segments of the business.” He underscored the company’s ongoing expansion within regulated markets, particularly in mainland Europe, driven by strong performances in both casino and sports betting.
Despite these encouraging takeaways, market reactions were cautious. 888’s stock price experienced a marginal rise from £1.65 ($2.17) to £1.67 following the announcement. This suggests that investors may be awaiting further clarity on the company’s strategy for navigating the increasingly competitive environment and regulatory obstacles in the year ahead.
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