Interim Management Statement

RNS Number : 2275R

888 Holdings plc

01 November 2011

 



1 November 2011                                                                           

888 Holdings Public Limited Company

("888" or "the Group")

Interim Management Statement
Q3 2011 Key Performance Indicators and Trading Update*

888, one of the world's most popular online gaming entertainment and solutions providers, is pleased to provide the following trading update for the third quarter of 2011.

Highlights

·      Group revenue US$86 million (Q3 2010: US$61 million), an increase of 42% year-on-year and a 10% increase compared to the record Q2 2011, led by B2C

·      Revenue B2C US$74 million (Q3 2010: US$51 million), an increase of 45% year-on-year and a 12% increase compared to Q2 2011, reflecting strong increases in Poker and Casino

·      Revenue B2C Casino US$37 million (Q3 2010: US$27 million), an increase of 41%

·      Revenue B2C Poker US$18 million (Q3 2010: US$8 million), an increase of 120%, driven by the continuing success of the Poker 6 platform

·      Group revenue during the first three quarters of 2011 at US$240 million (2010: US$191 million), an increase of 26%

·      Number of active customers B2C Casino and Poker at 442,000 (Q3 2010: 165,000), a 167% increase compared to Q3 2010

·      As at 30 September 2011, 888 had 10.1 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 24% since 30 September 2010

·      Strong current trading continues into 2011 final quarter

Commenting on today's announcement Brian Mattingley, Deputy Chairman said:

"The continuing focus on our core competencies has led to another excellent quarter, and the highest quarterly revenue ever achieved in 888's history. Our compelling offering and successful marketing campaigns have helped to build on our outstanding first nine month performance and drive player numbers to record levels. Strength across all of our platforms leaves us well positioned for the future.

Trading has continued to be strong into the fourth quarter, and as such we expect that clean EBITDA for the financial year ending 31 December 2011 will be significantly ahead of current market expectations."

* All percentages in this release are calculated without rounding

Key Performance Indicators

Third Quarter 2011

Group

·      Revenue US$86 million (Q3 2010: US$61million), an increase of 42%

·      As at 30 September 2011, 888 had 10.1 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 24% since 30 September 2010

B2C

·      Revenue B2C at US$74 million (Q3 2010: US$51 million), an increase of 45%

·      Revenue B2C Casino at US$37 million (Q3 2010: US$27 million), an increase of 41%

·      Revenue B2C Poker at US$18 million (Q3 2010: US$8 million), an increase of 120%

·      Revenue B2C Bingo at US$13 million (Q3 2010: US$13 million), an increase of 6%

·      Revenue B2C Emerging Offering at US$5 million (Q2 2010: US$4 million), an increase of 40%

·      Number of active customers B2C Casino and Poker at 442,000, an increase of 167% compared to Q3 2010

·      Number of active customers B2C Casino at 200,000, an increase of 173% compared to Q3 2010

·      Number of active customers B2C Poker at 307,000, an increase of 166% compared to Q3 2010

·      Quarterly revenue B2C per active Casino and Poker customer was US$126, a 40% decrease compared to Q3 2010, a result of significant expansion in new customer recruitment coupled with a significant, but slower, revenue increase

·      Quarterly revenue B2C per active Casino customer was US$187, a 48% decrease compared to Q3 2010, a result of significant expansion in new customer recruitment coupled with a significant, but slower, revenue increase

·      Quarterly revenue B2C per active Poker customer was US$59 a 17% decrease compared to Q3 2010

Dragonfish

·      Revenue  B2B at US$12 million (Q3 2010: US$9 million), an increase of 28%

Nine months ended 30 September 2011

·      Group Revenue up 26% to US$240 million (2010: US$191 million)

B2C

·      Revenue B2C up 27% to US$205 million (2010: US$162 million)

·      Revenue B2C Casino up 24% to US$106 million (2010: US$86 million)

·      Revenue B2C Poker up 51% to US$42 million (2010: US$28 million)

·      Revenue B2C Bingo up 13% to US$41 million (2010: US$36 million)

·      Revenue B2C Emerging Offering up 32% to US$16 million (2010: US$12 million)

Dragonfish

Revenue B2B up 20% to US$35 million (2010: US$29 million)

Current Trading

The strong trading during Q3 continued into October, led by Casino. Daily average revenue during the first 29 days of October was 5 per cent higher than Q3 2011. As at 28th October 2011 the Group had US$71 million of cash and cash equivalents and US$43 million liabilities to customers.

Analyst and Investor Conference Call

There will be an analyst and investor conference call at 10:30am (GMT) today.

Dial-in number:	[phone]
Passcode:	6764169
Replay number:	[phone]
Replay passcode:	6764169

Contacts and enquiries

888
Brian Mattingley, Deputy Chairman	[phone]
Aviad Kobrine, Chief Financial Officer	[phone]
M:Communications
Ann-marie Wilkinson/Andrew Benbow	[phone]

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$m*	2010				2011
	Q1	Q2	Q3	Q4	Q1	Q2	Q3
B2C Revenue
Casino	32.8	26.5	26.6	31.0	33.4	35.6	37.5
Poker	11.6	8.0	8.2	10.6	11.3	12.7	18.1
Bingo	10.9	12.6	12.5	14.1	14.2	13.3	13.3
Emerging Offering	3.5	4.4	3.9	4.4	5.4	4.8	5.4
Total  Revenue B2C	58.8	51.6	51.2	60.1	64.4	66.4	74.3
B2C KPI
Revenue Casino US$m	32.8	26.5	26.6	31.0	33.4	35.6	37.5
Active Players Casino (000)	76.9	68.1	73.4	123.8	129.5	159.2	200.4
Revenue Casino per active player US$	$  426	$  390	$  362	$  250	$  258	$ 223	$ 187
Revenue Poker US$m	11.6	8.0	8.2	10.6	11.3	12.7	18.1
Active Players Poker (000)	167.9	121.5	115.3	200.9	221.9	231.3	307.2
Revenue Poker per active player US$	$  69	$  66	$  71	$   53	$  51	$ 55	$ 59
Revenue Casino & Poker US$m	44.4	34.6	34.8	41.6	44.7	48.2	55.6
Active  Players Casino & Poker (000)	217.8	167.2	165.3	283.0	302.3	342.0	442.1
Revenue Casino & Poker per active player S$	$  204	$  207	$  211	$  147	$  148	$ 141	$ 126
B2B Revenue
Revenue B2B	10.4	9.5	9.3	11.3	10.9	12.1	11.9
Revenue	69.2	61.0	60.6	71.3	75.3	78.5	86.2

*Rounded

 

END

 

 

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