Q2 KPIs and Trading Update

RNS Number : 5261A

888 Holdings plc

04 August 2008

 



4 August 2008 

888 Holdings Public Limited Company ('888')

Q2 2008 Key Performance Indicators and Trading Update

888, one of the world's most popular online gaming entertainment companies, is pleased to provide the following Key Performance Indicators for the second quarter of 2008 and cumulative results for the six months ended 30 June 2008.

Highlights 

• Total Operating Income up 36% to US$69 million (Q2 2007: US$51 million), a 5% increase over Q1 2008  

• Net Gaming Revenue ('NGR') up 33% to US$67 million (Q2 2007: US$50 million), a 4% increase over Q1 2008   

• NGR from Casino up 27% to US$35 million (Q2 2007: US$28 million)

• Net Gaming Revenue from Poker at US$20 million (Q2:2007: US$20 million)

• Net Gaming Revenue from Emerging Offering up 376% to US$12 million (Q2 2007: US$2 million) 

• 26% increase in real money registered customer accounts to 5.2 million as at 30 June 2008

• Strategic partnership signed in June with Sportech PLC, one of the UK's leading gaming businesses, representing a step-change for 888 in its B2B operations

• Agreement with PokerDome further illustrates 888's status as a leading provider in the online gaming white label market 

• 888's strategy of integrating popular third party games onto its platform continued through agreements with Dynamite Idea, Electracade, Rival Powered, GTS and Cryptologic. First wave of games to be launched in Q3

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

'We are delighted with our Q2 2008 results especially given that we achieved sequential quarterly growth during a period which is typically seasonally quiet and throughout the Euro 2008 championship. In the first three weeks of July we experienced stronger Poker trading and significant growth in both our Bingo and Sportsbook businesses. Our various strategic initiatives are progressing well and given the good start to the third quarter and our clear business strategy we are confident of delivering future growth during 2008.'

Set out below are 888's results for Q2 and cumulative results for the first six months of the year. 

Key Performance Indicators 

Second quarter 2008:

• Total Operating Income up 36% to US$69 million (Q2 2007: US$51 million), a 5% increase above previous quarter 

• NGR up 33% to US$67 million (Q2 2007: US$50 million), a 4% increase on the previous quarter 

• Net Gaming Revenue from Casino up 27% to US$35 million (Q2 2007: US$28 million), a 1% increase on the previous quarter

• Net Gaming Revenue from Poker at US$20 million, substantially the same as in Q2 2007 and 10% below the previous quarter, in line with general industry weakness during the Euro 2008 football tournament. However the number of Poker active customers remained stable and reached 169,898 an increase of 2% compared to Q2 2007 and 1% below previous quarter, demonstrating that the same number of players spent less NGR per active player, hence the over-all lower NGR during the quarter 

• Net Gaming Revenue from Emerging Offering (predominantly Bingo and Sportsbook) reached US$12 million (Q2 2007: US$2 million) an increase of 376%, and 56% increase above previous quarter

• Number of active customers in Casino and Poker reached 214,725 an increase of 3% compared to Q2 2007 and 1% above previous quarter

• Number of Casino active customers reached 77,837 an increase of 8% compared to Q2 2007 and 1% above previous quarter

• Quarterly NGR per active Casino and Poker customer reached US$257, an increase of 12% compared to Q2 2007 and a 4% decline from previous quarter

• Casino quarterly NGR per active customer reached US$456, an increase of 18% compared to Q2 2007 and a 1% increase from previous quarter.

• Poker quarterly NGR per active customer at US$116, a decrease of 3% compared to Q2 2007 and 9% decline from previous quarter driven by seasonality and the impact of the Euro 2008 football tournament

• As at 30 June 2008, 888 had 5.2 million real money registered customer accounts, representing an increase of 26% in real money customer accounts since 30 June 2007.

Six months ended 30 June 2008:

• Total Operating Income up 38% to US$135 million (H1 2007: US$98 million) 

• NGR up 35% to US$132 million (H1 2007: US$97 million) 

• Net Gaming Revenue from Casino up 31% to US$70 million (H1 2007: US$54 million)

• Net Gaming Revenue from Poker up 2% to US$42 million (H1 2007:41 million)

• Net Gaming Revenue from Emerging Offering up 680% to US$19 million (H1 2007: US$2 million)

Current Trading

The third quarter of the year started well: During the first 22 days of July average daily NGR was approximately 2% higher than Q2 driven mainly by Emerging Offering as well as higher Poker NGR. 

The recently announced strategic deal with Sportech PLC is progressing as planned, the latest Poker Dome white label deal is already launched and further deals are expected to be announced later this year. In addition, the first wave of third party integrated games is expected to be launched in Q3. 

Given current trading, the progress of the strategic deals and the launching of new games, we are confident in delivering future growth during 2008.

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 09.30 am (BST) today.

In order to ensure access to the call, attendees should please confirm their attendance in advance by emailing Andrew Benbow: [e-mail].

Dial-in number:     [phone]

Passcode:            7688423

A replay of the conference call will be available on the 888 Holdings website, www.888holdingsplc.com

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Contacts and enquiries 

888

Gigi Levy            Chief Executive Officer              [phone]

Aviad Kobrine    Chief Financial Officer              [phone]

Bell Pottinger Corporate & Financial 

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 - KPI 

In Millions
KPI*
	Q1 07	Q2 07	Q3 07	Q4 07	Q1 08	Q2 08
Casino & Poker
NGR US$m	$  46.9	$  47.8	$  47.6	$  56.7	$  56.9	$  55.2
Active players	205,907	208,876	209,811	209,918	213,115	214,725
NGR per active player	$228	$229	$227	$270	$267	$257
Casino
NGR US$m	$  26.0	$  27.9	$  29.0	$  35.3	$   35.0	$ 35.5
Active players	70,769	72,362	72,847	73,737	77,370	77,837
NGR per active player	$367	$386	$398	$478	$453	$456
Poker
NGR US$m	$  20.9	$   19.9	$  18.6	$  21.4	$  21.9	$   19.8
Active players	168,066	166,772	168,105	170,401	170,988	169,898
NGR per active player	$124	$119	$111	$126	$128	$116
Emerging Offering **
NGR US$m		2.5	5.8	6.2	7.6	11.8
Group NGR US$m	$  46.9	$  50.3	$  53.4	$  62.8	$  64.5	$  67.0
Other operating income	$  0.0	$   0.7	$  1.1	$   1.7	$  1.6	$    2.2
Total Operating Income	$  46.9	$  51.0	$  54.5	$  64.5	$  66.1	$   69.2
*Rounded
** Reclassified per management accounts, figure for Q2 2007 in financials is US$2.2 million.

 

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