888 Holdings Revenue Jump 18% to $521M in 2016March 31, 2017 8:36 am
This month, the world’s two biggest poker operators released their full year earnings for 2016, with Amaya generating $1.16 billion in revenues and $135.6 million in profits for the year, and 888 Holdings reporting revenues of $520.8 million and profits of $59 million.
Of course, these revenue figures include a diverse range of gambling products beyond poker, and it’s just as well, too, as both company’s results were powered by year-on-year increases it their other gambling verticals. Case in point, PokerStars recorded fairly flat poker revenues in 2016, while 888 Holdings saw its poker business fall by 3% to $84.4 million.
However, 888 Holdings saw its casino revenues jump by 21% to $279.3 million, its Sport book soar by 49% to $51.9 million, and its bingo unit lodge a moderate increase of 7% to $44 million. Commenting on the overall impressive figures, Chief executive Itai Frieberger stated:
“2016 was another fantastic year for 888, during which we continued to deliver very strong organic revenue and profit growth. This was again underpinned by further outstanding progress in casino, sport and across regulated markets.”
Following the full year results being released, shares in 888 Holdings rose 7% to an 11-year high, with analysts expressing their bullishness over the firm’s future. As Investec subsequently commented:
“Given 888’s size and superior technology offering, as well as its growing Sport product vertical, we regard 888 as either a consolidator or key potential take-out target.”
As a result, some analysts have forecast the firm’s earnings to grow by 45.6% this year, and by 2019 to reach $74 million in profits, and by 2020 to generate $708 million in revenues. No doubt, the predictions are based upon 888 successfully managing to implement its expansion strategy of establishing itself further in regulated markets across the globe, while also concentrating on ensuring the utmost security and protection for its customers.