(Alliance News) - Online gaming firm 888 Holdings PLC on Wednesday said it traded slightly ahead of management expectations in the second quarter, with UK revenue beginning to be hurt as retail and leisure physical venues reopened in May.
Gibraltar-based 888 said that in the second quarter of 2021 revenue increased to USD257 million from USD214 million, up 20% year-on-year or up 10% at constant currency.
However, the company noted that, since UK retail and leisure venues reopened in May - providing competition to 888's online offering - average daily revenues in the UK have dropped by 20%.
Meanwhile, 888's poker and bingo revenue dropped, due to exceptionally high demand in the comparative second quarter of 2020 whilst most hospitality and retail venues were closed.
Despite of the impact of the return of high-street competition, 888 said revenue growth was being driven by long-term growth in customer numbers; increased casino and sports income; and continued expansion into regulated markets.
Regulated markets made up 74% of all income in this period, compared to 73% a year prior.
The betting firm noted strong second-quarter performances in the UK, Italy, Spain, Romania, Portugal, somewhat offset by impact of new German regulations. Since being awarded a sport-betting licence by a German regulator, it has increased investment in the country, 888 noted.
"For the second half of the year, the board remains mindful of the potential impact of greater than normal seasonality in the summer post Covid-19, retail and leisure venues reopening across international markets, and the previously disclosed expected impact of regulatory and compliance changes, which are weighted towards the second half of the year" the company said.
"The board remains confident that, with 888's advanced technology, products and diversification across markets, the group remains well positioned to deliver further strategic progress during 2021 and beyond," Pazner added.
Shares in 888 were trading down 3.9% at 397.00 pence each in London on Wednesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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888 Holdings (888)