In 2018, 888 Holdings saw a minor decrease in earnings, generating $529.9 million in contrast to the preceding year. They ascribed this to various elements, including heightened rivalry within the sector and ongoing legislative adjustments in the gaming industry.
This decline was not unforeseen. Itai Frieberger, who vacated his position as CEO in January (succeeded by Avi Pazner), had previously cautioned that 2018’s figures might underperform.
The fiscal report validated his projection. Their internet poker platform encountered a substantial decline in earnings, plummeting 37% to $49 million. Bingo earnings also experienced a setback, diminishing by 17% to $32.4 million. These setbacks were the principal catalysts for the overall earnings dip.
Nevertheless, not all was unfavorable for 888. Their sports wagering platform fared admirably, experiencing a 6% surge in earnings (reaching $80.3 million), likely propelled by that year’s FIFA World Cup. Online casino games also witnessed expansion, with earnings ascending 8% to $317.6 million.
In summary, notwithstanding the obstacles, 888 sustained profitability. Their adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose by 6% to $107.1 million, and their adjusted profit before tax observed an 11% upswing, attaining $86.7 million.
CEO Pazner maintained an optimistic outlook, asserting that 2018’s financial performance was “resilient” despite the challenges, underscoring their record-setting EBITDA. He emphasized the company’s ongoing expansion within regulated markets, particularly in continental Europe, driven by the robust performance of their casino and sports betting products.
Despite this favorable interpretation, the markets responded with prudence, with 888’s share value experiencing a marginal increase following the disclosure.
