888 Holdings plc
14 February 2007
888 Holdings Public Limited Company ('888')
Trading Update and Q4 2006 Key Performance Indicators
888, one of the world's most popular online gaming entertainment companies, is
pleased to provide the following trading update for the fourth quarter of 2006
and cumulative results for the twelve months ended 31 December 2006.
Financial highlights
888 has started the new financial year well with record turnover in January 2007
for non-US operations in both the casino and poker businesses and continued
increase in new real money member sign-ups, first time depositors and deposit
levels.
All Businesses
• Net Gaming Revenue for the 12 months ended 31 December 2006 - Up 7% at
US$290 million (2005: US$271m)
Non-US Business
• Net Gaming Revenue for the 12 months ended 31 December 2006 up 28% at
US$157 million (2005: US$123m)
• Net Gaming Revenue from non-US poker up 81% to US$68 million
(2005:US$38 million)
• 35% increase in real money registered member accounts to 3.6 million as
at 31 December 2006
• Liquid Resources of US$117 million as at 9 February 2007
• Record turnover in January 2007 for non-US operations in both the casino
and poker businesses - increase in non-US business turnover by more than
15% from October 2006 to January 2007
• Average daily first time depositors more than 35% higher during the
first 11 days of February 2007 compared to the period immediately following
departure from the US
• Average daily deposits more than 35% higher during the first 11 days of
February 2007 compared to the period immediately following departure from
the US
• Average daily poker active players approximately 27% higher during the
first 11 days of February compared to the period immediately following
departure from the US
Operational highlights
• New mobile real-money casino launched - February 2007
• On-line sports betting licence obtained in Italy - December 2006
• Integrated Blackjack introduced to Poker customers with immediate
success -average daily revenue in January of US$28,000
• New Casino in Spanish and German
• Partnership announced with the owner of Rileys clubs - unique online /
offline poker partnership
Commenting on today's announcement, Gigi Levy, Chief Executive Officer, said:
'888 continues to expand its innovative product offering, diversify its
geographical footprint with a localized customer experience and extend its
multi-channel customer acquisition and retention campaigns. Following our exit
from the US market in Q4 2006, the company has worked hard to continue expanding
its non-US business and we are especially pleased with the results released
today and our performance in recent months.
Our success is the outcome of our clear strategy of providing a unique customer
experience based on an innovative product offering, a multi-channel marketing
approach and our market-leading customer service.
We have a number of further innovative and exciting initiatives to underpin and
drive further growth in 2007. We are encouraged by the strong current trading
and remain confident for a successful full year outcome.'
Contacts and enquiries
888
Gigi Levy Chief Executive Officer +350 49800
Aviad Kobrine Chief Financial Officer +350 49800
Bell Pottinger Corporate & Financial
Ann-marie Wilkinson/Nick Lambert/Christopher Hamilton +44 (0)20 7861 3232
Set out below are 888's results for Q4 2006 for the non-US business, the
cumulative results for the 12 months ended 31 December 2006 for the non-US
business and the same data for the entire business.
Key performance Indicators - Non-US Business
The re-focusing of 888's business on non-US regions saw turnover from these
regions increase by more than 15% from October 2006 to January 2007.
Q4 2006
• Net Gaming Revenue up 12% to US$40 million (Q4 2005: US$36 million)
• Net Gaming Revenue from casino up 3% to US$22 million
(Q4 2005: US$21 million)
• Net Gaming Revenue from poker up 26% to US$18 million
(Q4 2005: US$15million)
• Number of active members reached 189,112, an increase of 5% compared to
Q3 2006
• Number of active casino members reached 41,307, a decrease of 11%compared
to Q3 2006
• Number of active poker members reached 147,805, an increase of 11%compared
to Q3 2006
• Quarterly Net Gaming Revenue per active group member was US$214,
identical to Q3 2006. In casino quarterly Net Gaming Revenue per active
member was US$535, a 10% increase compared to US$488 in Q3 2006. In poker,
quarterly Net Gaming Revenue per active member was US$124, a 5% increase
compared to US$118 in Q3 2006
• As at 31 December 2006, 888 had 3.6 million real money registered member
accounts from non-US regions, representing an increase of 35% in real money
member accounts since 31 December 2005
Twelve months ended 31 December 2006
• Net Gaming Revenue up 28% to US$157 million (twelve months to 31 December
2005: US$123 million)
• Net Gaming Revenue from casino up 4% to US$89 million (twelve months to
31 December 2005: US$85 million)
• Net Gaming Revenue from poker up 81% to US$68 million (twelve months to
31 December 2005: US$38 million)
Key performance Indicators - All Regions Including US
Note: The financial results and operational performance for all regions
including the US in Q4 2006 are not directly comparable to those in Q4 2005
given the suspension of 888's US operations in Q4 2006.
Q4 2006
• Net Gaming Revenue down 39% to US$47 million (Q4 2005: US$77 million)
• Net Gaming Revenue from casino down 35% to US$26 million
(Q4 2005: US$41 million)
• Net Gaming Revenue from poker down 43% to US$21 million
(Q4 2005: US$36 million)
• Number of active members reached 235,449, a decrease of 20% compared
to Q3 2006
• Number of casino active members reached 48,525, a decrease of
32% compared to Q3 2006
• Number of active poker members reached 186,924, a decrease of
16% compared to Q3 2006
• Quarterly Net Gaming Revenue per group active member was US$201 compared
to US$269 in Q3 2006. In casino, quarterly Net Gaming Revenue per active
member was US$545 compared to US$624 in Q3 2006. In poker, quarterly Net
Gaming Revenue per active member was US$111 compared to US$155 in Q3 2006
Twelve months ended 31 December 2006
• Net Gaming Revenue up 7% to US$290 million (twelve months to
31 December 2005: US$271 million)
• Net Gaming Revenue from casino was US$161 million, same as in the
previous year (twelve months to 31 December 2005: US$161 million)
• Net Gaming Revenue from poker up 18% to US$129 million (twelve months
to 31 December 2005: US$110 million)
Current Trading
888 continues to expand its innovative product offering, diversify its
geographical footprint with focused localization and extend its multi-channel
customer acquisition campaigns.
As part of its strategy to grow the 888 brand in Europe and offer sports betting
services to its customers, 888 was granted an online sports betting licence in
Italy in December 2006. The licence was awarded to 888 in the recent tender by
the Italian government and will enable 888 to extend further its geographical
operations in one of Europe's most attractive gaming markets. 888 intends to
launch its full online sports betting service in Italy late this year.
This month, 888 successfully launched its mobile casino offering customers easy,
secure and entertaining access to the three most popular casino games -
blackjack, roulette, and slots - available in fun or real money play. Using this
new platform, customers can access the same account on their mobile phone and
personal computer. The mobile software is compatible with over 340 handsets,
approximately 85% of the European market.
In early January 2007, 888 introduced its popular Black-Jack casino game into
the Poker offering giving direct access to its poker client-base. The new game
became an instant success among poker players with average daily revenue in
January 2007 at approximately US$28,000.
In line with its on-going localisation strategy and product innovation in
January 888 released its new Casino-on-Net in Spanish and German, followed more
recently by the introduction of a new innovative 'Century' video slots game and
launch of an all new Crazy Blackjack game featuring side-bets and Blackjack
dedicated jack-pot.
This month, 888 announced a co-operation agreement with the owner of Rileys, the
UK's leading chain of 168 snooker, pool and poker clubs, whereby 888 use its
online poker capabilities to support www.rileyspoker.com website, powered by
888.com. The poker site will be promoted by Rileys in their clubs to their
525,000 members and externally in new club member recruitment. This deal is the
first combined online and offline poker offering of its kind in the UK and a
stepping stone for 888's customer recruitment through business partners. The
partnership expands 888's diversified, multi-channel strategy to grow customer
reach and appeal, significantly broadening its potential audience.
Next month, 888 plans to introduce its all new Backgammon product. Capitalising
on 888's strong in-house research and development expertise this new peer-to-
peer game, is another step in 888's strategic goal to achieve one-stop-shop
gaming entertainment under the 888 umbrella brand.
888 remains fully committed to promote responsible gaming, industry self
regulation and adherence to the highest standards of customer care. In line
with its long standing approach 888 appointed a dedicated Director of
Responsible Gaming, Ruth Tanami, in Q3 2006. Ruth's role is to manage the
company's internal and external responsible gaming policy and brings with her
considerable relevant experience including working at Gamcare.
Following suspension of 888's US business in October 2006 average daily first
time depositors fell by approximately 37%. Since then customer acquisition
improved consistently and during the first 11 days of February average daily
first time depositors is more than 35% higher compared to its low in early
November 2006. Similarly, average daily deposits fell approximately 50%
following the departure from the US but since then average daily deposits
improved consistently such that during the first 11 days of February the average
daily deposit is more than 35% higher from the lowest point in early November
2006. Finally, average daily poker active players fell approximately 39% without
the US operations but since then average daily active poker players improved and
during the first 11 days of February the figure is approximately 27% higher from
the low point in late October 2006.
888 has no further update on the announcements made by the company on 30 October
2006 and by Ladbrokes on 6 November 2006 concerning discussions regarding a
possible transaction. A further announcement will be made in due course on the
outcome of such discussions
The Board is therefore confident of the Company's prospects for 2007.
Analyst and Investor Conference Call
Gigi Levy, Chief Executive Officer and Aviad Kobrine, Chief Financial Officer,
will be hosting an analyst and investor conference call at 9.30am (GMT) today.
Dial-in number: +44 (0) 20 8974 7950 (UK)
718 354 1176 (US)
Passcode: 185497#
UK replay number: 0800 032 9687 (available for 1 week)
Replay passcode: 87429603
International reply number: +44 (0) 20 7136 9233 (available for 1 week)
Replay passcode: 87429603
This announcement includes statements that are, or may be deemed to be,
'forward-looking statements'. By their nature, forward-looking statements
involve risk and uncertainty since they relate to future events and
circumstances. Forward-looking statements may and often do differ materially
from actual results. Any forward-looking statements in this announcement reflect
888's view with respect to future events as at the date of this announcement.
Save as required by law or by the Listing Rules of the UK Listing Authority, 888
undertakes no obligation publicly to release the results of any revisions to any
forward-looking statements in this announcement that may occur due to any change
in its expectations or to reflect events or circumstances after the date of this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange