888 Holdings has published the 2019 full-year results. The company has posted an increase of 4% in the gross revenue as compared to last year to $560.3mn.
However, the profit before tax fell from $108.7mn to $45.3mn from 2018 to 2019. Adjusted earnings before interest, tax, depreciation, and amortization fell by 20% as well. The adjusted earnings fell from $107.1mn to $85.6mn in 2019.
The cost ratio of the group is now increased to 85% as compared to 2018 when it was 80%.
888 Holdings also clarified that gaming duties in the UK have increased and they have expanded in the regulated market. The overheads of the group have also increased after the acquisition of Betbright Acquisition. The group considers that these are the primary reasons for reduced profitability in 2019.
The group also mentioned that 888 Holdings is still determined to expand in the US. The group would strengthen the team, marketing, and product as well. The Group did not rule out potential partnerships as well for long term prospects in the US.
Due to the pandemic outbreak in the world, the industry is struggling. However, 888 Holdings said that they would continue to look for companies for mergers and acquisitions. The group also mentioned that even though the sportsbooks products are suffering due to lack of sporting events in the world. But the customers have shown interest in its casino and poker products.
The 888 Holdings is also confident that it will be able to deliver on its plan for 2020 despite the pandemic outbreak. However, the group is monitoring the impact of COVID19.
Chief Executive of 888 Holdings, Itai Pazner, said that they recognize people are spending more time at home with financial stress and anxiety. He insisted that this is the time when the group should focus on gambling-related problems even more.
He further commented that the group is constantly communicating with the customers to inform them about safer gambling practices. The group has also added several alerts to the proprietary safe gambling software to tighten the monitoring as well. The observer software of the group constantly monitors the activity and flags incident to the customer care team when a situation of concern arises.
He concluded that with the technical strength, a growing customer base and a committed team would help 888 Holdings to achieve exciting growth opportunities in 2020 and beyond.