Q1 KPI's and IMS

RNS Number : 9108K

888 Holdings plc

28 April 2010

 



28 April 2010

888 Holdings Public Limited Company

("888")

Interim Management Statement

Q1 2010 Key Performance Indicators and Trading Update*

888, one of the world's most popular online gaming entertainment and solutions providers, gives the following trading update for the first quarter of 2010.

Financial Highlights

·     Total Operating Income US$69 million (Q1 2009: US$57 million), an increase of 21%

·     Total Operating Income B2C at US$59 million (Q1 2009: US$45 million), an increase of 30%

·     Total Operating Income B2C Casino at US$33 million (Q1 2009: US$27 million), an increase of 23%

·     Total Operating Income B2C Poker at US$12 million (Q1 2009: US$14 million), a decrease of 15%

·     Total Operating Income B2C Emerging Offering at US$14 million (Q1 2009: US$5 million), an increase of 203%

·     Number of active customers B2C Casino and Poker at 218,000 (Q1 2009: 168,000), an increase of 30% compared to Q1 2009

·     Number of active customers B2C Casino at 77,000 (Q1 2009: 62,000), an increase of 24% compared to Q1 2009

·     Number of active customers B2C Poker at 168,000 (Q1 2009: 133,000), an increase of 26% compared to Q1 2009

·     Taking a prudent and pragmatic view of current trading the Board has embarked on a cost cutting exercise across the group

* All percentages in this release are calculated without rounding.

Operational Highlights

B2C

·     Roll-out of new branding

Dragonfish

·     Italian casino deals signed with bwin Italia and Gioco Digitale

·     Cashcade bingo deal extended for a further two years

·     New Agreement signed with Prime Gaming to provide a comprehensive bingo solution

·     A new bingo network, Bingo Hollywood, launched

Key Performance Indicators

Set out below are 888's key performance indicators for the first quarter of 2010.

Group

·     Total Operating Income US$69 million (Q1 2009: US$57 million), an increase of 21% and a 13% increase on a pro forma basis (see appendix)

·     As at 31 March 2010, 888 had 7.6 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 24% since 31 March 2009

B2C

·     Total Operating Income B2C at US$59 million (Q1 2009: US$45 million), an increase of 30%

·     Total Operating Income B2C Casino at US$33 million (Q1 2009: US$27 million), an increase of 23%

·     Total Operating Income B2C Poker at US$12 million (Q1 2009: US$14 million), a decrease of 15% despite a 26% increase in number of active player, reflecting challenging poker environment  

·     Total Operating Income B2C Emerging Offering at US$14 million (Q1 2009: US$5 million), an increase of 203% compared to Q1 2009

·     Number of active customers B2C Casino and Poker at 218,000 (Q1 2009: 168,000), an increase of 30% compared to Q1 2009

·     Number of active customers B2C Casino at 77,000 (Q1 2009: 62,000), an increase of 24% compared to Q1 2009

·     Number of active customers B2C Poker at 168,000 (Q1 2009: 133,000), an increase of 26% compared to Q1 2009

·     Quarterly Total Operating Income B2C per active Casino and Poker customer was US$204, a 15% decrease compared to Q1 2009, driven mainly by a decline in poker yield per active player

·     Quarterly Total Operating Income B2C per active Casino customer was US$426, virtually unchanged from Q1 2009

·     Quarterly Total Operating Income B2C per active Poker customer was US$69, a 33% decrease compared to Q1 2009

Dragonfish

·     Total Operating Income at US$10 million (Q1 2009: US$12 million), a decrease of 13%, representing a 16% increase on a pro-forma like-for like basis (see note below)

Current Trading

Q2 Trading to date has been disappointing in casino, poker and bingo, in part due to historical seasonal trading patterns. During the first 25 days of the quarter daily average revenue was approximately 13 per cent below the Q1 average.

The group's financial position is strong with approximately US$93 million cash equivalents (of which approximately US$36 million represent liabilities to customers) and no debt, leaving the group in a sound position to exploit M&A opportunities when they become available.

The board is confident that appropriate steps, including cost cutting, are being taken, and remains positive about the future strategy and prospects of the group.

Material Events, Transactions and Financial Position

There have been no material events, transactions or changes in the financial position of 888 since the year end other than as set out above.

Commenting on today's announcement, Gigi Levy, Chief Executive Officer, said:

"While Q1 saw improvement on a year-on-year basis, B2C trading remains challenging across our product range, partly influenced by the seasonal pattern. Emerging Offering continues to out-perform the core products, and Dragonfish continues to win new deals, notably those in the newly regulated Italian market with bwin Italia and Gioco Digitale. However, revenue from new deals is yet to gain significant volume.

We believe that the right steps are being taken to counter the current challenges we face, and the board remains confident in 888's strategy."

Analyst and Investor Conference Call

Gigi Levy, Chief Executive Officer and Aviad Kobrine, Chief Financial Officer, will be hosting an analyst and investor conference call at 11.30am (BST) today.

Dial-in number:	[phone]
Passcode:	9324650
Replay number:	[phone] (available for 1 week)
Replay passcode:	9324650

-ends-

Contacts and enquiries

888
Gigi Levy, Chief Executive Officer	[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

Set out below are 888's unaudited key performance indicators for the period Q1 2008 to Q1 2010. Comparative Results for Q1 2010 are presented on a Pro forma Basis.

Following the acquisition of Wink Bingo, commencing on 1^st January 2010 the revenue generated by Wink Bingo is reported as part of B2C revenue and is excluded from B2B revenue. In addition, from 1^st January 2010, as a result of revisions to contractual arrangements the revenue generated by several B2B licensees, previously recognised on a gross basis, is now recognised on a net basis. In order to enable a like for like comparison, a pro-forma table is set out below showing 888's KPIs in Q1 2010 as if these changes did not take place.

US$m*	2008				2009				2010
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
B2C TOI
Casino	35.8	36.3	34.8	29.6	26.7	29.2	29.4	33.4	32.8
Poker	21.9	19.7	17.4	14.5	13.7	12.5	12.5	12.9	11.6
Emerging Offering	1.0	3.6	4.4	4.8	4.8	6.7	6.4	7.3	14.4
Total  Operating Income B2C	58.7	59.6	56.7	49.0	45.1	48.4	48.2	53.6	58.8
B2C KPI
TOI Casino US$m	35.8	36.3	34.8	29.6	26.7	29.2	29.4	33.4	32.8
Active Players Casino (000)	74.3	74.0	72.5	66.9	62.1	66.5	62.4	67.9	76.9
TOI Casino per active player US$	$ 482	$  491	$  480	$  443	$  429	$  439	$  471	$  493	$  426
TOI Poker US$m	21.9	19.7	17.4	14.5	13.7	12.5	12.5	12.9	11.6
Active Players Poker (000)	158.4	153.0	149.3	136.7	133.1	142.4	133.8	131.9	167.9
TOI Poker per active player US$	$  138	$  129	$  117	$  106	$  103	$   88	$   93	$   98	$   69
TOI Casino & Poker US$m	57.7	56.0	52.3	44.2	40.4	41.8	41.8	46.3	44.4
Active  Players Casino & Poker (000)	199.1	195.9	193.7	176.5	167.7	179.7	168.5	172.7	217.8
TOI Casino & Poker per active player US$	$  290	$  286	$  270	$  250	$  241	$  232	$  248	$  268	$  204
B2B TOI
Total B2B Operating Income	7.4	9.7	11.0	10.5	11.9	12.4	12.7	14.3	10.4
Total Operating Income	66.1	69.2	67.7	59.5	57.0	60.9	60.9	67.9	69.2

* Rounded

Pro forma

US$m*	2008				2009				2010
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
B2C TOI
Casino	35.8	36.3	34.8	29.6	26.7	29.2	29.4	33.4	32.8
Poker	21.9	19.7	17.4	14.5	13.7	12.5	12.5	12.9	11.6
Emerging Offering	1.0	3.6	4.4	4.8	4.8	6.7	6.4	7.3	6.5
Total  Operating Income B2C	58.7	59.6	56.7	49.0	45.1	48.4	48.2	53.6	50.9
B2C KPI
TOI Casino US$m	35.8	36.3	34.8	29.6	26.7	29.2	29.4	33.4	32.8
Active Players Casino (000)	74.3	74.0	72.5	66.9	62.1	66.5	62.4	67.9	76.9
TOI Casino per active player US$	$ 482	$  491	$  480	$  443	$  429	$  439	$  471	$  493	$  426
TOI Poker US$m	21.9	19.7	17.4	14.5	13.7	12.5	12.5	12.9	11.6
Active Players Poker (000)	158.4	153.0	149.3	136.7	133.1	142.4	133.8	131.9	167.9
TOI Poker per active player US$	$  138	$  129	$  117	$  106	$  103	$   88	$   93	$   98	$   69
TOI Casino & Poker US$m	57.7	56.0	52.3	44.2	40.4	41.8	41.8	46.3	44.4
Active  Players Casino & Poker (000)	199.1	195.9	193.7	176.5	167.7	179.7	168.5	172.7	217.8
TOI Casino & Poker per active player US$	$  290	$  286	$  270	$  250	$  241	$  232	$  248	$  268	$  204
B2B TOI
Total B2B Operating Income	7.4	9.7	11.0	10.5	11.9	12.4	12.7	14.3	13.8
Total Operating Income	66.1	69.2	67.7	59.5	57.0	60.9	60.9	67.9	64.7

* Rounded

 

END

 

 

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