Q1 KPIs and IMS

RNS Number : 6482R

888 Holdings plc

05 May 2009

 



888 Holdings Public Limited Company

('888')

Interim Management Statement

Q1 2009 Key Performance Indicators and Trading Update*

888, one of the world's most popular online gaming entertainment companies is pleased to provide the following trading update for the first quarter of 2009.

Highlights 

• Total Operating Income  US$57 million, a decrease of 4% compared to Q4 2008 and a 2% decrease on a daily average basis

• Total Operating Income B2C Emerging Offering at US$5 million, flat on Q4 2008 and a 1% increase on a daily average basis

• Total Operating Income B2B US$12 million, an increase of 13% compared to Q4 2008 and a 16% increase on a daily average basis

• Latest white label deal with UK's Racing Post launched in record time 

• New Bingo TV campaign launched in the UK

• Innovative televised poker tournament Poker Ashes tournament launched

• Two large scale poker leagues launched in the UK and Australia

• Live casino targeted at European customers launched

• Soft games/quick play games tab suite launched

• New Poker version launched incorporating 25 features and design changes

* All percentages in this release are calculated without rounding.

 Key Performance Indicators 

Set out below are 888's key performance indicators for the first quarter of 2009 split for the first time between our B2C and B2B lines of business. Historical KPIs since Q1 2008 prepared on a consistent basis are set out in the Appendix.

Group

• Total Operating Income US$57 million (Q4 2008: US$60 million), a decrease of 4% and a 2% decrease on a daily average basis primarily as a result of a disappointing B2C performance in March

• As at 31 March 2009, 888 had 6.1 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 25% since 31 March 2008

B2C

• Total Operating Income B2C at US$45 million (Q4 2008: US$49 million), a decrease of 8% and a 6% decrease on a daily average basis, mainly as a result of disappointing March trading

• Total Operating Income B2C Casino at US$27 million (Q4 2008: US$30 million), a decrease of 10% and an 8% decrease on a daily average basis

• Total Operating Income B2C Poker at US$14 million (Q4 2008: US$15 million), a decrease of 6% and a 4% decrease on a daily average basis

• Total Operating Income B2C Emerging Offering at US$5 million (Q4 2008: US$5 million), flat on Q4 and a 1% increase on a daily average basis

• Number of active customers B2C Casino and Poker at 168,000, a decrease of 5% compared to Q4 2008 

• Number of active customers B2C Casino at 62,000, a decrease of 7% compared to Q4 2008

• Number of active customers B2C Poker at 133,000, a decrease of 3% compared to Q4 2008

• Quarterly Total Operating Income B2C per active Casino and Poker customer was US$269, a 3% decrease compared to Q4 2008

• Quarterly Total Operating Income B2C per active Casino customer was US$429, a 3% decrease compared to Q4 2008

• Quarterly Total Operating Income B2C per active Poker customer was US$103, a 3% decrease compared to Q4 2008

B2B

• Total Operating Income B2B at US$12 million (Q4 2008: US$11 million), an increase of 13% and a 16% increase on a daily average basis

Current Trading 

Trading in Q2 to date improved compared to the first quarter of the year. During the first 33 days of the second quarter daily average revenue, across B2C and B2B lines of business, increased by more than 3% and new customer recruitment increased by more than 6%, in each case compared to the first quarter of 2009. B2C progress was led by Emerging Offering and improved Casino trading however poker was weaker.

888's recent white lable deal with the UK's Racing Post has already been implemented, in record time and further deals are in various stages of regulatory approval. In the UK, a new Bingo TV campaign was launched to stimulate Bingo growth. The innovative 'Poker Ashes' televised poker tournament was launched in Australia and will be shortly launched in the UK featuring celebrities such as Shane Warne and Darren Gough in addition to two large-scale poker leagues launched in the UK and Australia across hundreds of pubs.

Live casino targeted at European customers was launched comprising the popular Roulette, Blackjack and Baccarat on a web based platform which is fully integrated into 888's back office. A soft games/quick play games tab suite was also launched, offering 30 casual games. Finally, a new Poker version was launched incorporating 25 features and design changes following extensive consultation with customers and business partners including time bank, quick seat, hand history and money transfer between accounts.

The group's financial position is strong with approximately US$110 million cash equivalents (of which approximately US$32 million represent liabilities to customers) and no debt leaving the group in a sound position to exploit M&A opportunities when they become available. As such, the board remains confident about further progress during the year.

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:

'Our B2B business continued to show strong growth during the first quarter of 2009. Trading in B2C continued to be challenging reflecting the weak economic backdrop. Despite monthly sequential growth in January and February trading in March was weaker. Whilst we are encouraged by improved trading in April across all our lines of business we now start to enter the historically quieter seasonal period. However, our various business initiatives are progressing well, including our developing B2B offering and we therefore expect to grow the business further during the year.'

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 9.30am (BST) today.

Dial-in number:              [phone] 

Passcode:                     6492024 

UK replay number:        [phone] 

Replay passcode:        6492024

Contacts and enquiries

888
Gigi Levi, Chief Executive Officer	[phone]
Aviad Kobrine, Chief Financial Officer	[phone]
Bell Pottinger Corporate & Financial
Ann-marie Wilkinson / Nick Lambert / 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

	2008				2009
	Q1	Q2	Q3	Q4	Q1
B2C TOI (US$m)*
Casino	35.8	36.3	34.8	29.6	26.7
Poker	21.9	19.7	17.4	14.5	13.7
Emerging Offering	1.0	3.6	4.4	4.8	4.8
Total Operating Income B2C	58.7	59.6	56.7	49.0	45.1
B2C KPI
TOI Casino US$m*	35.8	36.3	34.8	29.6	26.7
Active Players Casino (000)	74.3	74.0	72.5	66.9	62.1
TOI Casino per active player US$	$ 482	$ 491	$ 480	$ 443	$ 429
TOI Poker US$m*	21.9	19.7	17.4	14.5	13.7
Active Players Poker (000)	158.4	153.0	149.3	136.7	133.1
TOI Poker per active player US$	$ 138	$ 129	$ 117	$ 106	$ 103
TOI Casino & Poker US$m*	58.7	59.6	56.7	49.0	45.1
Active Players Casino & Poker (000)	199.1	195.9	193.7	176.5	167.7
TOI Casino & Poker per active player US$	$ 295	$ 304	$ 293	$ 278	$ 269
B2B TOI (US$m)*
Total Operating Income B2B	7.4	9.7	11.0	10.5	11.9
Total Operating Income (US$m)	66.1	69.2	67.7	59.5	57.0
*Rounded

 

END

 

 

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