888 Holdings posts Q3 revenue growth that is up 7% on Q3 in 2021. The firm’s online casino products attributed for growth throughout period! (Image from corporate888.com)
Having recently confirmed its agreement with Caesars Entertainment to acquire William Hill, 888 Holdings is back in the news with its announcement that its online casino has led to the company posting significant revenue growth in Q3 of 2021.
In the period up to September 30, 888 Holding’s total revenue has increased 7% on the same period in 2020, to $229.9 million. That is an increase of $14.3 million with the performance of the firm’s online casino product being the catalyst for this gain.
888 attributes its increase in total gaming revenue to continued expansion into regulated markets and considers the growth even more impressive considering its strong showing up to September 30 in 2020. Revenues throughout Q3 in 2020 enjoyed a significant boost due to the culmination of a variety of prominent sporting events that had previously been postponed due to COVID. That led to a 21% increase in sports betting revenue.
Consequently, B2C betting revenue dropped 15% ($4.9 million) for Q3 this year compared to the same period last year. However, this was offset and more, by an 11% ($18.9 million) increase in B2C Gaming revenue brought in by 888 Holding’s online casino platforms. The official trading update posted in the company’s investor centre attributes this B2C Gaming revenue growth to the company’s continued investment into improving the user experience across its gaming platforms, the launch of 150 new casino games throughout Q3, and strong performances in key regulated markets such as the UK, Italy, Spain, and Romania.
2021 Revenues Posted by 888 Holdings to Date
888 Holdings strong performance in Q3 continues a strong 2021 that has seen total revenue increase by 28% at the same point in 2020. Revenue stands at $758.3 million compared to $594.7 million on September 30, 2020. B2C Gaming revenue is up 27% for the year at $622.3 million, while thanks to the company’s expansion into the US sports betting industry, B2C Betting has increased a staggering 41% from $75.8 million at this point in 2020, to $107.1 million.
The company is now in a strong position, one that has enabled them to enter advanced talks to acquire William Hill and bring the famous bookmaker back to UK shores. 888 has claimed it is in agreement with Caesars Entertainment to acquire William Hill for £2.2 billion.
888 Expect a $10 Million Hit After Ceasing Operations in the Dutch Market
While 888 continues to post increasing revenues, the company is expected to take a $10 million hit in Q4 of 2021. The leading online gambling operator has had to withdraw from the gambling market in the Netherlands. The Dutch authorities made changes to online gambling policies back in April. These changes required gambling operators to apply for a new license. Those without the new license were unable to offer their services to Dutch players beginning October 1.
888 Holding’s hopes to resume operations in the newly regulated Netherlands during the second half of 2022 after revealing they do plan to apply for this new license. The application process which has so far issued 10 licenses, and has a further 19 applications to get through, is a drawn-out process. There are strict conditions to meet, and the online platforms have to undergo rigorous testing.
The company predicts that this will hit revenues to the tune of $10 million, yet they still believe the group will perform in line with expectations throughout Q4.
