UK-listed online gambling operator 888 Holdings reported record earnings in 2018, even as business in its poker and bingo markets declined by double-digits.
Figures released Tuesday show 888’s overall revenue hitting US$529.9m last year, a 2% decline from 2017’s result. But adjusted earnings improved 6% to $107.1m and adjusted profit before tax rose 11% to $86.7m while actual pre-tax profits hit $108.7m. Investors liked what they heard, as 888’s shares closed out Tuesday’s trading up 2.5% to 166.7p.
888’s B2C product verticals were a mixed bag, as casino gained 8% to $317.6m and sports betting rose 6.4% to $80.3m. But poker tumbled 37% to $49m, bingo was down 17.5% to $32.4m and the Dragonfish B2B bingo division reported revenue falling 8% to $50.6m.
888’s new CEO Itai Pazner praised his company’s performance despite “headwinds in some areas of the business,” including increased regulatory scrutiny by the UK Gambling Commission. UK revenue was down 16% to $170.6m, pushing the market’s contribution to overall revenue down five points to 32%, which the company dismissed as the result of its ‘diversification strategy.’