Q2 KPI's and IMS

RNS Number : 3997Q

888 Holdings plc

03 August 2010

 



3rd August 2010

888 Holdings Public Limited Company

("888")

Interim Management Statement

Q2 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 second quarter of 2010 and cumulative results for the first six months of the year.

Financial Highlights*

·      Total Operating Income at US$61 million (Q2 2009: US$61 million), same level as Q2 2009

·      As at 30 June 2010 888 had 7.9 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 22% since 30 June 2009

·      Total Operating Income B2C at US$52million (Q2 2009: US$48 million), an  increase of 6%

·      Total Operating Income B2C Bingo at US$13 million (Q2 2009: US$3 million), an increase of 372%

·      Total Operating Income B2C Emerging Offering** at US$4.4 million (Q2 2009: US$4 million) an increase of 11%

·      Total Operating Income B2B at US$10 million (Q2 2009: US$12 million), a decrease of 24% and 3% increase on a pro-forma basis***

·      Group Total Operating Income in H1 2010 at US$130 (H1 2009: US$118 million), an increase of 10%

·      Total Operating Income B2C in H1 2010 at US$110 (H1 2009: US$94 million), an increase of 18%

* All percentages in this release are calculated without rounding

** Comprising primarily sport and live dealer

*** See appendix

Operational Highlights

·      Acquisition of Mytopia social games development studio from Real Dice Inc. completed, extending 888's reach and market share in the fast growing social networks and smart mobile devices space

B2C

·      Poker version 6 released following a complete re-coding of the software client with fresh new look and feel and enhanced features, game play and user experience

·      Brand new online store launched for poker players where they can convert loyalty points into a wide range of gadgets and products

·      Innovative first web based (no download required) immersive 3D 888 casino launched, enabling players to play casino games in a virtual world with lobby, roulette, blackjack and high rollers rooms, with customised avatars

Dragonfish

·      An agreement with Microgame S.p.A. for the provision of a comprehensive casino product to the Italian gaming market

·      An agreement with MTV Networks UK & Ireland to provide a bingo product, marking their first step into online gaming

·      Extension of existing agreements with Costa Bingo and Moon Bingo

·      Launch of two new standalone bingo networks, with Cashcade (Rollover Bingo) and Costa (Sing Bingo). Dragonfish now powers over 20 standalone bingo networks  

·      Awarded two of the most prestigious awards at the inaugural eGaming Review B2B Awards - White Label Partner of the Year and Bingo Network of the Year

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

"Trading throughout this period has been challenging, impacted by a number of factors including general online poker weakness, adverse F/X and, in relation to Poker and Casino, the World Cup. However, we have seen resilience in our emerging offering, especially Sport throughout the World Cup, and we continue to refresh our B2C offering to attract and retain players.

We made the strategic acquisition of Mytopia late in the quarter, which gives us an immediate footprint in the fast-growing social gaming arena, complementing our core offering and giving us access to millions of new customers.  

Dragonfish has continued to win new contracts, such as the casino deal with Microgame in Italy and with MTV, as well as several contract extensions. I am delighted that we have appointed a new Managing Director to head up the business and, as the industry moves towards a greater emphasis on content and flexible solutions, his experience and contacts will enable Dragonfish to capitalise on the opportunities created.

We see a challenging environment ahead, albeit one with opportunities created as new licensing regimes are implemented. We have been granted a licence in France and have a number of strategic partnerships lined up in Italy for both B2C and Dragonfish, and are optimistic about the future prospects in these markets - though these are likely to take time and investment to come to fruition.

We remain confident in the underlying fundamentals of the business and believe that the transformation of 888 - and the industry - into a gaming entertainment destination regulated in local markets presents significant opportunities for growth."

Key Performance Indicators

Group

·      Total Operating Income at US$61 million (Q2 2009: US$61 million), same level as Q2 2009

·      As at 30 June 2010, 888 had 7.9 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 22% since 30 June 2009

B2C

·      Total Operating Income B2C at US$52million (Q2 2009: US$48 million), an  increase of 6%

·      Total Operating Income B2C Casino at US$27 million (Q2 2009: US$29 million), a decrease of 9%, impacted by the World Cup, F/X and seasonality

·      Total Operating Income B2C Poker at US$8 million (Q2 2009: US$13 million), a decrease of 36%, in line with general online poker trends

·      Total Operating Income B2C Bingo at US$13 million (Q2 2009: US$3 million), an increase of 372% 

·      Total Operating Income B2C Emerging Offering at US$4.4 million (Q2 2009: US$4 million), an increase of 11%

·      Number of active customers B2C Casino and Poker at 167,000, (Q2 2009: 180,000) a decrease of 7%

·      Number of active customers B2C Casino at 68,000, (Q2 2009: 67,000) an increase of 2%

·      Number of active customers B2C Poker at 122,000, (Q2 2009: 142,000) a decrease of 15%

·      Quarterly Total Operating Income B2C per active Casino and Poker customer was US$207, an 11% decrease compared to Q2 2009

·      Quarterly Total Operating Income B2C per active Casino customer was US$390, a decrease of 11% compared to Q2 2009

·      Quarterly Total Operating Income B2C per active Poker customer was US$66, a 25% decrease compared to Q2 2009

 Dragonfish

·      Total Operating Income B2B at US$10 million (Q2 2009: US$12 million), a decrease of 24%, and 3% increase on a pro-forma basis (see appendix)

Six months ended 30 June 2010

·      Total Operating Income up 10% to US$130 million (H1 2009: US$118 million)

B2C

·      Total Operating Income B2C up 18% to US$110 million (H1 2009: US$94 million)

·      Total Operating Income B2C Casino up 6% to US$59 million (H1 2009: US$56 million)

·      Total Operating Income B2C Poker down 25% to US$20 million (H1 2009: US$26 million)

·      Total Operating Income B2C Bingo at US$24 million (H1 2009: US$5 million), an increase of 363%

·      Total Operating Income B2C Emerging Offering at US$8 million (H1 2009: US$6 million) an increase of 25%

Dragonfish

·      Total Operating Income B2B US$20 million (H1 2009: US$24 million), a decrease of 18% and a 9% increase on a pro-forma basis

Current Trading

Trading during July saw a return to historical seasonal patterns following the end of the World Cup, with an average daily revenue decrease of approximately 6% (excluding an unusual casino winning of two VIPs) compared to the second  quarter. There has however been an increase in first time depositors in Casino and Poker compared to June 2010.

Material Events, Transactions and Financial Position

Other than as disclosed on 28 May 2010 (Trading Update) and 14 June 2010 (Mytopia acquisition) 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.

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 09.30am (BST) today.

Dial-in number:	[phone]
Passcode:	7659047
Replay number:	[phone]
Replay passcode:	7659047

Half-Yearly Results

888 will announce its half-yearly results for the six months ended 30 June 2010 on Tuesday 31st August 2010.

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 Q2 2010. Comparative Results for 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 2010 as if these changes did not take place.

US$m*	2008				2009				2010
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
B2C TOI
Casino	35.8	36.3	34.8	29.6	26.7	29.2	29.4	33.4	32.8	26.5
Poker	21.9	19.7	17.4	14.5	13.7	12.5	12.5	12.9	11.6	8.0
Bingo	0.9	2.5	2.5	2.6	2.4	2.7	2.8	2.8	10.9	12.6
Emerging Offering	0.1	1.1	2.0	2.2	2.4	4.0	3.5	4.5	3.5	4.4
Total  Operating Income B2C	58.7	59.6	56.7	49.0	45.1	48.4	48.2	53.6	58.8	51.6
B2C KPI
TOI Casino US$m	35.8	36.3	34.8	29.6	26.7	29.2	29.4	33.4	32.8	26.5
Active Players Casino (000)	74.3	74.0	72.5	66.9	62.1	66.5	62.4	67.9	76.9	68.1
TOI Casino per active player US$	$482	$ 491	$  480	$  443	$ 429	$ 439	$ 471	$ 493	$ 426	$  390
TOI Poker US$m	21.9	19.7	17.4	14.5	13.7	12.5	12.5	12.9	11.6	8.0
Active Players Poker (000)	158.4	153.0	149.3	136.7	133.1	142.4	133.8	131.9	167.9	121.5
TOI Poker per active player US$	$ 138	$ 129	$  117	$  106	$ 103	$   88	$   93	$   98	$  69	$  66
TOI Casino & Poker US$m	57.7	56.0	52.3	44.2	40.4	41.8	41.8	46.3	44.4	34.6
Active  Players Casino & Poker (000)	199.1	195.9	193.7	176.5	167.7	179.7	168.5	172.7	217.8	167.2
TOI Casino & Poker per active player US$	$ 290	$ 286	$  270	$  250	$ 241	$ 232	$ 248	$ 268	$ 204	$  207
B2B TOI
Total B2B Operating Income	7.4	9.7	11.0	10.5	11.9	12.4	12.7	14.3	10.4	9.5
Total Operating Income	66.1	69.2	67.7	59.5	57.0	60.9	60.9	67.9	69.2	61.0

* Rounded

Pro forma

US$m*	2008				2009				2010
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
B2C TOI
Casino	35.8	36.3	34.8	29.6	26.7	29.2	29.4	33.4	32.8	26.5
Poker	21.9	19.7	17.4	14.5	13.7	12.5	12.5	12.9	11.6	8.0
Bingo	0.9	2.5	2.5	2.6	2.4	2.7	2.8	2.8	3.0	3.5
Emerging Offering	0.1	1.1	2.0	2.2	2.4	4.0	3.5	4.5	3.5	4.4
Total  Operating Income B2C	58.7	59.6	56.7	49.0	45.1	48.4	48.2	53.6	50.9	42.5
B2C KPI
TOI Casino US$m	35.8	36.3	34.8	29.6	26.7	29.2	29.4	33.4	32.8	26.5
Active Players Casino (000)	74.3	74.0	72.5	66.9	62.1	66.5	62.4	67.9	76.9	68.1
TOI Casino per active player US$	$482	$ 491	$  480	$  443	$ 429	$ 439	$ 471	$ 493	$ 426	$  390
TOI Poker US$m	21.9	19.7	17.4	14.5	13.7	12.5	12.5	12.9	11.6	8.0
Active Players Poker (000)	158.4	153.0	149.3	136.7	133.1	142.4	133.8	131.9	167.9	121.5
TOI Poker per active player US$	$ 138	$ 129	$  117	$  106	$ 103	$   88	$   93	$   98	$   69	$  66
TOI Casino & Poker US$m	57.7	56.0	52.3	44.2	40.4	41.8	41.8	46.3	44.4	34.6
Active  Players Casino & Poker (000)	199.1	195.9	193.7	176.5	167.7	179.7	168.5	172.7	217.8	167.2
TOI Casino & Poker per active player US$	$ 290	$ 286	$  270	$  250	$ 241	$ 232	$ 248	$ 268	$ 204	$ 207
B2B TOI
Total B2B Operating Income	7.4	9.7	11.0	10.5	11.9	12.4	12.7	14.3	13.8	12.7
Total Operating Income	66.1	69.2	67.7	59.5	57.0	60.9	60.9	67.9	64.7	55.2

* Rounded

 

END

 

 

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