The year 2018 proved challenging for 888 Holdings, as their income experienced a 2% decrease, settling at $529.9 million. The company attributed this downturn to a fiercely competitive landscape and escalating regulatory measures.
Itai Pazner, who assumed the role of Chief Executive Officer from Itai Frieberger in January, candidly acknowledged the company’s “underwhelming” results in 2018 during a conversation.
The financial figures support his assessment. Their earnings from poker suffered a significant blow, plummeting by 37% to $49 million, while bingo revenue also witnessed a decline of 17%, reaching $32.4 million. These setbacks were the primary drivers behind the overall revenue contraction.
However, there were some glimmers of hope. Fueled by the excitement surrounding the FIFA World Cup, revenue from sports wagering surged by 6%, hitting $80.3 million. Casino games also demonstrated positive momentum, with revenue expanding by 8% to $317.6 million.
In terms of financial gains, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) saw a modest 6% rise to $107.1 million, and adjusted profit before tax experienced an 11% increase, reaching $86.7 million.
Despite the obstacles encountered, Pazner maintained a positive outlook, drawing attention to the unprecedented EBITDA and underscoring the company’s robust performance in regulated European markets, particularly in the casino and sports betting sectors.
Notably, despite the optimistic tone, investors appeared somewhat unconvinced. 888’s stock price registered only a marginal uptick following the announcement, edging up from £1.65 (approximately $2.17) to £1.67.
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