888 Holdings Sees 30% Growth In Pre-Tax Profits
888 Holdings, the parent company of 888poker, recently announced record breaking revenue and pre-tax earnings for the financial year ending December 31, 2013.
The company's revenue increased by 7% from $375.8 million in 2012 to $400.5 million in 2013 thanks to a 7% increase in poker revenues ($87.5 million to $93.6 million) and a 15% increase in casino revenues ($165.5 million to $190.4 million). These substantial year-over-year increases more than offset a 16% decline in bingo revenue ($51.8 million to $43.7 million) to achieve record breaking revenue to the company.
The company's profit before tax increased by 30% from $40.8 million in 2012 to $53.2 million in 2013, which not only sets new company records but was achieved on a much lower rate of revenue increase. The record breaking pre-tax profit is primarily due to expenses before taxes only increasing by 4% ($335.0 million in 2012 to $347.3 million to 2013) paired with a 7% year-over-year revenue growth.
“2013 was a very busy but also exceptionally rewarding year for 888," said CEO Brian Mattingley in a statement to the London Stock Exchange. "I am delighted to report that we have delivered record-breaking revenue and increased our profitability, driven by our strong brands, exceptional platforms and best-in-class marketing systems.
"We delivered excellent progress in our core markets and built on momentum in Spain, where we have quickly developed a market-leading position. Casino delivered another strong performance and we made further market share gains in Poker, advancing to number two in the PokerScout global rankings at the year end. We have also significantly strengthened our offering in Sport, which is delivering positive results. All of this was achieved whilst devoting significant energy and resources on preparing 888 for our successful launch in the regulated US market.
"I am delighted with 888’s achievements in 2013 which were made possible by the amazing hard work, dedication and talent of our team. I would like to take this opportunity to thank each of them for their fantastic efforts during the year.
"We have started 2014 well, with average daily revenue up more than 8 percent in the year to date, and look forward to the year ahead with continued confidence.”
As Mattingley mentioned, 888poker is currently ranked in second place, behind industry leader PokerStars, in total cash game traffic with a seven-day average of 2,300 players. This is a 21% increase from 2012 and was one of the key factors in the 7% total growth in poker revenue. Just behind 888poker in terms of cash game traffic are the iPoker Network with a 2,000 seven-day average, partypoker with a 2,000 seven-day average, and Full Tilt Poker with a 1,900 seven-day average.
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Traffic figures courtesy of PokerScout.com.