TIDM888
RNS Number : 7258W
888 Holdings plc
03 August 2009
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3 August 2009
888 Holdings Public Limited Company ("888")
Interim Management Statement
Q2 2009 Key Performance Indicators and Trading Update*
888, one of the world's most popular online gaming entertainment companies is
pleased to provide the following trading update for the second quarter of 2009
and cumulative results for the six months ended 30 June 2009.
Highlights
* Total Operating Income at US$61 million (Q2 2008: US$69 million), a 7% increase
compared to Q1 2009
* Total Operating Income B2C at US$48million (Q2 2008: US$60 million), a 7%
increase compared to Q1 2009
* Total Operating Income B2B at US$12 million (Q2 2008: US$10 million), a 4%
increase compared to Q1 2009
* Total B2C Emerging Offering Operating Income at US$7 million (Q2 2008: US$4
million), a 40% increase compared to Q1 2009
Commenting on today's announcement, Gigi Levy, Chief Executive Officer, said:
"We are extremely pleased to report very good sequential quarter on quarter
progress in Q2 2009 both in our B2C and B2B lines of business. Trading was
stronger in Casino and Emerging Offering with Poker remaining softer, in line
with wider industry trends. We are particularly encouraged with increased active
customer levels in both B2C Casino and Poker. We enter the seasonally quieter
summer period with delivery of our strategy on track and we remain committed to
investing in the business in spite of the macro-economic environment. We are
confident of delivering further growth during 2009 based on additional planned
B2C activities and a set of newly launched B2B partnerships which we expect to
start generating revenues in the coming months."
* All percentages in this release are calculated without rounding.
Set out below are 888's results for Q2 and cumulative results for the first six
months of the year.
Key Performance Indicators
Second quarter 2009:
Group
* Total Operating Income at US$61 million (Q2 2008: US$69 million), a decrease of
12% compared to Q2 2008 yet a 7% increase compared to Q1 2009
* As at 30 June 2009, 888 had 6.4 million Casino, Poker and Sport real money
registered customer accounts, representing an increase of 25% since 30 June 2008
B2C
* Total B2C Operating Income at US$48million (Q2 2008: US$60 million), a
decrease of 19% compared to Q2 2008 yet a 7% increase compared to Q1 2009
* Total B2C Casino Operating Income at US$29 million (Q2 2008: US$36 million), a
decrease of 20% compared to Q2 2008 yet a 10% increase compared to Q1 2009
* Total B2C Poker Operating Income at US$13 million (Q2 2008: US$20 million), a
decrease of 36% compared to Q2 2008 and a 9% decrease compared to Q1 2009
* Total B2C Emerging Offering Operating Income at US$7 million (Q2 2008: US$4
million) an increase of 88% compared to Q2 2008 and 40% increase compared to Q1
2009
* Number of active B2C Casino and Poker customers at 180,000, a decrease of 8%
compared to Q2 2008 and 7% increase compared to Q1 2009
* Number of active B2C Casino customers at 67,000, a decrease of 10% compared to
Q2 2008 and 7% increase compared to Q1 2009
* Number of active B2C Poker customers at 142,000, a decrease of 7% compared to Q2
2008 and 7% increase compared to Q1 2009
* Quarterly Total Operating Income B2C per active Casino and Poker customer was
US$232, a 19% decrease compared to Q2 2008 and 3% decrease compared to Q1 2009
* Quarterly Total Operating Income B2C per active Casino customer was US$439, a
decrease of 11% compared to Q2 2008 and an increase of 2% compared to Q1 2009
* Quarterly Total Operating Income B2C per active Poker customer was US$88, a 32%
decrease compared to Q2 2008 and 15% decrease compared to Q1 2009, based on an
extensive campaign late in the quarter which brought many customers toward the
end of the quarter who did not have sufficient playing time to materially
contribute to revenues
B2B
* Total Operating Income B2B at US$12 million (Q2 2008: US$10 million), an
increase of 28% compared to Q2 2008 and 4% compared to Q1 2009
Six months ended 30 June 2009
* Total Operating Income at US$118 million (H1 2008: US$135 million), a decline of
13% compared to H1 2008
B2C
* Total Operating Income B2C at US$94 million ( H1 2008: US$118 million), a
decrease of 21%
* Total B2C Casino Operating Income at US$56 million (H1 2008: US$72 million), a
decrease of 23%
* Total B2C Poker Operating Income at US$26 million (H1 2008: US$42 million), a
decrease of 37%
* Total B2C Emerging Offering Operating Income at US$11 million (H1 2008: US$5
million) an increase of 151%
B2B
* Total Operating Income B2B at US$24 million (H1 2008: US$ 17 million), an
increase of 42%
Current Trading
Following encouraging growth achieved in both business segments during the
second quarter of the year, trading during July has followed the historic
seasonal pattern of softer trading during this time of year, which is
anticipated to last until September: During the first 28 days of July average
daily revenue was approximately 2 per cent higher than during the first half of
the year and approximately 0.5 per cent lower than Q2.
We have a healthy B2B pipeline and are in various stages of negotiating a number
of new B2B deals which are expected to have a positive impact on revenues in
coming months. We expect further progress during the second half of the year
especially during the fourth quarter. Given current trading, the progress of the
strategic deals and the launching of new games, we expect to grow the business
further during the year.
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 (BST) today.
Dial-in number: +44 (0) 207138 0845
Passcode: 7577874
Replay number: +44 (0) 207806 1970
Replay passcode: 7577874#
Contacts and enquiries
+--------------------------------------------------+--------------------+
| 888 | |
+--------------------------------------------------+--------------------+
| Gigi Levi, Chief Executive Officer | +350 200 49800 |
+--------------------------------------------------+--------------------+
| Aviad Kobrine, Chief Financial Officer | +350 200 49800 |
+--------------------------------------------------+--------------------+
| | |
+--------------------------------------------------+--------------------+
| Bell Pottinger Corporate & Financial | |
+--------------------------------------------------+--------------------+
| Ann-marie Wilkinson / Nick Lambert / Andrew | +44 (0)20 7861 |
| Benbow | 3232 |
+--------------------------------------------------+--------------------+
This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These statements contain the words "anticipate",
"believe", "intend", "estimate", "expect" and words of similar meaning. 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. All statements, other than
statements of historical facts included in this announcement, including, without
limitation, those regarding 888's financial position, business strategy, plans
and objectives of management for future operations (including development plans
and objectives relating to 888's products and services) are forward-looking
statements that are based on current expectations. Such forward-looking
statements are based on numerous assumptions regarding 888's operating
performance, present and future business strategies, and the environment in
which 888 will operate in the future. 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 expressly disclaims any obligation or undertaking, to
disseminate any updates or revisions to any forward-looking statements,
contained herein to reflect any change in its expectations, with regard thereto
or any change in events, conditions or circumstances on which any such statement
is based. Past performance cannot be relied upon as a guide to future
performance.
Appendix
+---------------------+---+----------+----+---+----------+----+---+----+---+----+---+---+--------+
| US$m* | 2008 | 2009 |
+-------------------------+---------------------------------------+-----------------+
| | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| B2C TOI | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| Casino | 35.8 | 36.3 | 34.8 | 29.6 | 26.7 | 29.2 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| Poker | 21.9 | 19.7 | 17.4 | 14.5 | 13.7 | 12.5 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| Emerging Offering | 1.0 | 3.6 | 4.4 | 4.8 | 4.8 | 6.7 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| Total Operating Income | 58.7 | 59.6 | 56.7 | 49.0 | 45.1 | 48.4 |
| B2C | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| B2C KPI | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| TOI Casino US$m | 35.8 | 36.3 | 34.8 | 29.6 | 26.7 | 29.2 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| Active Players Casino | 74.3 | 74.0 | 72.5 | 66.9 | 62.1 | 66.5 |
| (000) | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| TOI Casino per active | $ 482 | $ | $ 480 | $ | $ | $ |
| player US$ | | 491 | | 443 | 429 | 439 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| TOI Poker US$m | 21.9 | 19.7 | 17.4 | 14.5 | 13.7 | 12.5 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| Active Players Poker | 158.4 | 153.0 | 149.3 | 136.7 | 133.1 | 142.4 |
| (000) | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| TOI Poker per active | $ 138 | $ | $ 117 | $ | $ | $ |
| player US$ | | 129 | | 106 | 103 | 88 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| TOI Casino & Poker US$m | 57.7 | 56.0 | 52.3 | 44.2 | 40.4 | 41.8 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| Active Players Casino & | 199.1 | 195.9 | 193.7 | 176.5 | 167.7 | 179.7 |
| Poker (000) | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| TOI Casino & Poker per | $ | $ | $ 270 | $ | $ | $ |
| active player US$ | 290 | 286 | | 250 | 241 | 232 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| B2B TOI | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| Total B2B Operating | 7.4 | 9.7 | 11.0 | 10.5 | 11.9 | 12.4 |
| Income | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| | | | | | | |
+-------------------------+----------+--------+----------+--------+--------+--------+
| Total Operating Income | 66.1 | 69.2 | 67.7 | 59.5 | 57.0 | 60.9 |
+-------------------------+----------+--------+----------+--------+--------+--------+
| *Rounded | | | | | | |
+---------------------+---+----------+----+---+----------+----+---+----+---+----+---+---+--------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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