Online gaming firm reported $520m revenue, 13% up on FY15, and record PBT of c.$60m
Companies: 888 Holdings Plc
Shares in 888 Holdings jumped 9% on Tuesday after the gaming firm reported record revenue of $520m in its full-year results despite facing considerable currency headwinds.
Currency headwinds knocked $48m off the top line with revenues increasing 13% on a reported basis (2016: $521m, 2015: $462m) but 18% on a constant currency (cc) basis.
The majority of revenues were from B2C business which jumped 15% on reported basis and 20% on a cc basis. The groups' casino business delivered $279.3m, up 21% on the previous year, whilst 888 Sport's revenue increased an impressive 49% (reported) to $52m (58% cc).
Weak sterling hit profits more markedly, with adj EBITDA increasing just 12%, to $90m, compared to the 24% on a cc basis. Its adj EBITDA margin actually increased on a cc basis by 0.9%, with reported margins remaining stable. Despite this, the Group delivered record PBT of nearly $60m.
Mobile was the big winner for the Gibraltar-based firm during the year, driving growth across verticals and contributing 60% of UK B2C revenues, up from 45% in 2015.
CEO Itai Frieberger said it was a "fantastic year" for 888, with the firm delivering "very strong" organic revenue and profit growth:
"888's further expansion in the UK, Spain and Italy is a strong demonstration of the Group's ability to drive excellent growth and build leading market positions across regulated markets as the industry continues to head in this direction."
He added that despite currency headwinds, 888 had achieved record revenue and the Group's had achieved "healthy" underlying margins, and a significant PBT increase to $59.2m.