888 Holdings PLC (LSE:888) expects to post “record” full-year revenue for last year on double-digit growth and said it continues to enjoy “strong cash generation.”
The online betting and gaming company saw revenue grow 14% to US$972mln in the year ended 31 December 2021, thanks in part to continued expansion in regulated markets.
However, Q4 revenue was US$214mln, down 16% year-on-year, in line with the board’s expectations.
This largely reflected a strong comparative period and the previously disclosed impact of regulatory and compliance changes, including the exit from the Netherlands, a statement said.
The company reiterated the “transformational” £2.2bln acquisition of William Hill International is due to complete in Q2 2022.
“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,” said chief executive Itai Pazner.
"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,” he added.
The company ended the year with strong cash generation and a robust balance sheet with cash and cash equivalents, net of customer balances, of US$147mln.
Regulated markets contributed 74% of revenue, with strong performances in the UK, Italy, Romania, and Portugal, although regulatory changes led to the Netherland’s exit from all non-Dutch gambling sites.
Its business-to-consumer (B2C) sales rose 15% to US$934mln – led by 24% casino growth.
The company reiterated its commitment to net-zero carbon emissions by 2035.
Results for the 12 months ended 31 December 2021 will be published in March.
Its shares slipped 2.3% in Tuesday morning’s early dealings.