Q4 KPI's and IMS
7th February 2011
888 Holdings Public Limited Company
("888" or "the Group")
Interim Management Statement
Q4 2010 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 fourth quarter of 2010 and cumulative results for the twelve months ended 31 December 2010.
Financial Highlights
· Group Total Operating Income US$71 million, 18% increase compared to Q3 2010
· Total Operating Income B2C US$60 million, 17% increase compared to Q3 2010, boosted by growth in Casino, Poker and Bingo
· Total Operating Income B2B US$11 million, 21% increase compared to Q3 2010
· Group Total Operating Income in 2010 US$262 million, 6% increase compared to 2009
· Total Operating Income B2C in 2010 US$222 million, 13% increase compared to 2009
· Total Operating Income B2B in 2010 at US$40 million, 21% decrease representing 4% increase on a pro-forma like for like basis**
· Number of active customers B2C Casino and Poker at 283,000, 71% increase compared to Q3 2010 driven by product improvement and successful marketing
· As at 31 December 2010, 888 had 8.7 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 23% since 31 December 2009
Operational Highlights
B2C
· 888casino 3D released
· Games Tab released in two additional languages
· Innovative PokerCam product release imminent, allowing players real-time video streams in real-money poker games
· Six new instant games released for Bingo
· Significant marketing campaigns launched across B2C offering
Dragonfish
· Launched Full Fun (www.pokerXtrem.fr), ad Astra (www.pokersubito.fr) and 888poker.fr on the joint liquidity poker network in France
· Agreement with two additional partners for the provision of comprehensive casino and bingo products
· Launched City Bingo (www.citybingo.com), the third new standalone bingo software platform with Mandalay Media following the success of Costa Bingo (June 2009) and Sing Bingo (July 2010)
· Awarded 'Most Popular Online Bingo Software' at the 2011 BingoPort.co.uk Players' Choice Awards
Key Performance Indicators
Fourth Quarter 2010
Group
· Group Total Operating Income US$71 million, 18% increase compared to Q3 2010
· As at 31 December 2010, 888 had 8.7 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 23% since 31 December 2009
B2C
· Total Operating Income B2C US$60 million, 17% increase compared to Q3 2010
· Total Operating Income B2C Casino US$31 million, 17% increase compared to Q3 2010
· Total Operating Income B2C Bingo US$14 million, 13% increase compared to Q3 2010
· Total Operating Income B2C Poker US$11 million, 28% increase compared to Q3 2010
· Total Operating Income B2C Emerging Offering at US$4 million, 12% increase compared to Q3 2010
· Number of active customers B2C Casino and Poker at 283,000, 71% increase compared to Q3 2010
· Number of active customers B2C Casino at 124,000, 69% increase compared to Q3 2010
· Number of active customers B2C Poker at 201,000, 74% increase compared to Q3 2010
B2B
· Total Operating Income B2B at US$11million, 21% increase compared to Q3 2010
Twelve Months ended 31 December 2010
Group
· Total Operating Income US$262million (2009: US$247 million), 6% increase compared to 2009
B2C
· Total Operating Income B2C at US$222 million (2009: US$195 million), 13% increase compared to 2009
· Total Operating Income B2C Casino at US$117 million (2009: US$119 million), 1% decrease compared to 2009
· Total Operating Income B2C Poker at US$38million (2009: US$52 million), 26% decrease compared to 2009
· Total Operating Income B2C Bingo at US$50million (2009: US$11 million), 370% increase and an increase of 23% on a pro-forma like for like basis**
· Total Operating Income B2C Emerging Offering at US$16 million (2009: US$15 million), 12% increase compared to 2009
B2B
· Total Operating Income B2B in 2010 at US$40 million (2009: US$51 million), 21% decrease representing 4% increase on a pro-forma like for like basis**
Current Trading
888's strong Q4 trading continued into 2011, primarily in B2C. During January 2011 Group average daily revenue increased by approximately 3% compared to the strong Q4 2010.
Ladbrokes
Discussions with Ladbrokes are ongoing. A further announcement will be made as and when appropriate.
Other
As at 28 January 2011 the Group had US$67 million of cash and cash equivalents.
The Board expects clean EBITDA for 2010 to be in line with consensus forecasts.
The trading performance of the Wink Bingo business, acquired in December 2009, has been strong and exceeded the Board's expectations. While the earn out period is yet to end on 31 March 2011, the Board expects that the earn out payment, payable in May 2011, will be at the upper end of the earn out range. The Board is in advanced discussions with the Wink Bingo vendors in relation to the structure and timing of such a payment to ensure that the group meets its obligations.
Commenting on today's announcement, Gigi Levy, Chief Executive Officer, said:
"We are very pleased with the results delivered during the last quarter of 2010 - especially the record 18% quarterly sequential growth. Our marketing activities have driven record numbers of players to our sites, and growth was achieved across our business lines. We are particularly encouraged by our Poker business, which showed 28% sequential growth.
2011 has started well and given that our various business initiatives are progressing as planned we expect to grow the business further during the year."
* All percentages in this release are calculated without rounding
** Following the acquisition of Wink Bingo, commencing on 1st January 2010 the revenue generated by Wink Bingo is reported as part of B2C revenue and is excluded from B2B revenue. In addition, from 1st 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. Proforma figures were calculated as if these changes had not taken place.
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 (GMT) today.
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Dial-in number: |
+44 (0)20 7138 0821 |
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Passcode: |
7140259 |
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Replay number: |
+44 (0)20 7111 1244 |
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Replay passcode: |
7140259 [available for 1 week] |
Contacts and enquiries
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888 |
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Gigi Levy, Chief Executive Officer |
+350 200 49800 |
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Aviad Kobrine, Chief Financial Officer |
+350 200 49800 |
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M:Communications |
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Ann-marie Wilkinson/Andrew Benbow |
+44 (0)20 7920 2344 |
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* |
2009 |
2010 |
||||||
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|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
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|
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|
|
|
|
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B2C TOI |
|
|
|
|
|
|
|
|
|
Casino |
26.7 |
29.2 |
29.4 |
33.4 |
32.8 |
26.5 |
26.6 |
31.0 |
|
Poker |
13.7 |
12.5 |
12.5 |
12.9 |
11.6 |
8.0 |
8.2 |
10.6 |
|
Bingo |
2.4 |
2.7 |
2.8 |
2.8 |
10.9 |
12.6 |
12.5 |
14.1 |
|
Emerging Offering |
2.4 |
4.0 |
3.5 |
4.5 |
3.5 |
4.4 |
3.9 |
4.4 |
|
Total Operating Income B2C |
45.1 |
48.4 |
48.2 |
53.6 |
58.8 |
51.6 |
51.2 |
60.1 |
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|
|
|
|
|
|
|
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B2C KPI |
|
|
|
|
|
|
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|
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TOI Casino US$m |
26.7 |
29.2 |
29.4 |
33.4 |
32.8 |
26.5 |
26.6 |
31.0 |
|
Active Players Casino (000) |
62.1 |
66.5 |
62.4 |
67.9 |
76.9 |
68.1 |
73.4 |
123.8 |
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TOI Casino per active player US$ |
$ 429 |
$ 439 |
$ 471 |
$ 493 |
$ 426 |
$ 390 |
$ 362 |
$ 250 |
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|
|
|
|
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TOI Poker US$m |
13.7 |
12.5 |
12.5 |
12.9 |
11.6 |
8.0 |
8.2 |
10.6 |
|
Active Players Poker (000) |
133.1 |
142.4 |
133.8 |
131.9 |
167.9 |
121.5 |
115.3 |
200.9 |
|
TOI Poker per active player US$ |
$ 103 |
$ 88 |
$ 93 |
$ 98 |
$ 69 |
$ 66 |
$ 71 |
$ 53 |
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TOI Casino & Poker US$m |
40.4 |
41.8 |
41.8 |
46.3 |
44.4 |
34.6 |
34.8 |
41.6 |
|
Active Players Casino & Poker (000) |
167.7 |
179.7 |
168.5 |
172.7 |
217.8 |
167.2 |
165.3 |
283.0 |
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TOI Casino & Poker per active player US$ |
$ 241 |
$ 232 |
$ 248 |
$ 268 |
$ 204 |
$ 207 |
$ 211 |
$ 147 |
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B2B TOI |
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Total B2B Operating Income |
11.9 |
12.4 |
12.7 |
14.3 |
10.4 |
9.5 |
9.3 |
11.3 |
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Total Operating Income |
57.0 |
60.9 |
60.9 |
67.9 |
69.2 |
61.0 |
60.6 |
71.3 |
This information is provided by RNS
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