888 Holdings Regulatory News (888)

18 January 2022

888 Holdings Plc

("888" or "the Group")

2021 Post Close Trading Update

Another record year, with revenue growth of 14% driven by expansion in regulated markets

888 (LSE: 888), one of the world's leading online betting and gaming companies, today announces a post-close trading update for the 12 months ended 31 December 2021 ("FY21" or the "Period"). Comparative figures in this trading update are provided in US$ on a year-on-year basis against the 12 months ended 31 December 2020 ("FY20"), unless otherwise stated.

FY21 - Trading Highlights

· Revenue growth of 14% driven by continued success of the Group's product-leadership strategy and continued expansion in regulated markets

· Growth driven by regulated and taxed markets, which contributed 74% of revenue (2020: 73%), with strong performances in the UK, Italy, Romania and Portugal, partially offset by a decline in Germany

· B2C revenue increased 15% to $934 million, led by casino (+24%), with sports growth of +4% reflecting the greater impact of regulatory changes on the sport business, in particular the exit from the Netherlands

Q421 - Trading Highlights

· Q4 2021 revenue of $214 million (Q4 2020 $255 million) with 16% YoY decline being in-line with Board expectations, largely reflecting a strong comparative period, together with the previously disclosed impact of regulatory and compliance changes, including the exit from the Netherlands

· Positive initial progress following launch of SI Sportsbook in Colorado, but offset at a revenue level by upfront investment in promotions to drive customer activity

Other Highlights

· Transformational acquisition of William Hill International, expected to complete in Q2 2022

· Strategic partnership with Sports Illustrated, with the first launch of SI Sportsbook using 888's in-house platform in Q3 2021 and further states set to launch in 2022

· Strategic sale of B2C and B2B bingo business for up to $50 million, increasing the focus on core B2C platform and US growth strategies. The transaction is expected to complete in H1 2022

· Launch of 888sport in Germany using 888's in-house platform under a local licence in Q3 2021

· Continued strong cash generation and robust balance sheet with cash and cash equivalents, net of customer balances, of $147m as at 31 December 2021

· ESG committee of the Board formed, defining clear ESG strategy to deliver sustainable growth with initial commitment of net zero carbon emissions by 2035, as outlined in our zero carbon report 

The Group intends to release its results for the twelve months ended 31 December 2021 in March 2022.

Itai Pazner, CEO of 888, commented:

"2021 was a year of outstanding strategic progress for 888 as we announced the transformational acquisition of William Hill International, and reached an agreement to sell our bingo business to increase our focus on our B2C and US growth plans, as we continue to execute our plan to build a global online betting and gaming leader. In addition, we successfully launched SI Sportsbook in the US shortly after signing a long-term brand partnership and began operating 888sport under a new licence in Germany, all using our in house sports platform.

I am pleased to report another year of record revenues alongside these important strategic milestones, delivering double-digit revenue growth despite a very tough comparative period. This performance reflects the continued success of our data-driven investments and execution against our product-leadership focus that delivers ongoing improvements in the usability, quality and safety of our sports betting and gaming products."

Notes

1 Totals may not sum due to rounding. Growth rates are calculated on unrounded numbers

This announcement contains inside information.

- Ends -

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About 888 Holdings Plc:

888 Holdings plc (and together with its subsidiaries, "888" or the "Group") is one of the world's leading online betting and gaming companies. 888's mission is to develop state-of-the-art technology and products that provide fun, fair and safe digital gambling products to players globally. Safer gambling is a core focus for the Group and, at the beginning of 2020, 888 launched its 'Safer. Better. Together' safer gambling strategy and commitments.

888 has been at the forefront of the online gaming industry since its foundation in 1997, leveraging its proprietary technology to provide players and B2B partners an innovative and world-class online gaming experience.

In 2021, the company was proud to be recognised at the EGR operator of the year awards as the winner of the Casino Operator of the Year, as well as its in-house sportsbook being recognised as the In-House Product of the Year. In 2020, the company was proud to be recognised at the 2020 Gaming Intelligence awards as the winner in the Casino Operator of the Year category. In 2020, 888 also won two prestigious awards for its poker platform at the 2020 Poker Listings Operator Awards in the Most Improved Software and Best Beginner Software categories.

The Group is structured into two lines of business: B2C, under the 888 brands, and B2B, conducted through Dragonfish, which provides partners a leading platform through which to establish an online gaming presence and monetise their own brands in a safe and responsible manner.

888's consumer facing websites offer more than just online betting and gaming. They are entertainment destinations: places where people can enjoy a truly interactive experience and be part of an online community that shares common interests. 888's strong and trusted brands are all accessible through www.888.com.

Find out more about 888 at http://corporate.888.com/.