888 has published its FY2021 trading update, with its CEO Itai Pazner calling 2021 a year of ‘outstanding strategic progress’.
The online betting and gaming firm declared a revenue growth of 14% over the past year to $972m (2020: $850m), achieved thanks to an array of “important strategic milestones”.
Alongside its $2.2bn William Hill International transaction, which it expects to finalize in Q2, 888 also grew its presence in the US whilst also promising further state launches throughout 2022.
The company aligns its revenue rise to its product-leadership strategy and continued expansion in regulated markets, as well as growth driven by regulated and taxed markets, which contributed 74% of revenue (2020: 73%).
Robust performances across the United Kingdom, Italy, Romania, and Portugal are said to be partially offset by a German market revenue decline.
CEO Itai Pazner commented: “2021 was a year of outstanding strategic progress for 888 as we announced the transformational acquisition of William Hill International, and reached an agreement to sell our bingo business to increase our focus on our B2C and US growth plans, as we continue to execute our plan to build a global online betting and gaming leader.
“In addition, we successfully launched SI Sportsbook in the US shortly after signing a long-term brand partnership and began operating 888sport under a new license in Germany, all using our in-house sports platform.
“I am pleased to report another year of record revenues alongside these important strategic milestones, delivering double-digit revenue growth despite a very tough comparative period.
“This performance reflects the continued success of our data-driven investments and execution against our product-leadership focus that delivers ongoing improvements in the usability, quality, and safety of our sports betting and gaming products.”
888’s B2B revenue increased 8% to $38m (2020: $35m), with its B2C performance up 15% to $934m (2020: $814m). Its casino vertical led the way (+24%), with sports growth of 4% reflecting the greater impact of regulatory changes on the sport business, in particular the exit from the Netherlands.
The full-year performance comes even though the firm experienced a series of declines through Q4 2021, which saw revenue drop 16% to $214m (2020: $255m).
However, the group’s board stated that this fell in line with expectations, and is largely reflective of a strong comparative period, and the impact of regulatory and compliance changes, including its exit from the Netherlands.
888 added that while the launch of its SI Sportsbook in Colorado saw initial positive progress, it was offset at a revenue level by upfront investment in promotions to drive customer activity.
Through Q4 2021, from October 1 to December 31, B2C revenue fell 17% to $205m (2020: $247m), with B2B up 10% to $9m (2020: $8m).