LONDON (ShareCast) - (Sharecast News) - 888 Holdings reported a 15% rise in group revenue in its full-year results on Wednesday, or 10% at constant currency, to a new record of $980.1m (£745.41m), as it declared no dividend given the cash needed for its acquisition of William Hill.
The FTSE 250 gambling operator said that was driven by double-digit consumer-facing growth in most of its core and growth markets.

Revenue from regulated and taxed markets represented 74% of group revenue, up from 73% year-on-year, with revenue growth of 17% from those markets.

Adjusted EBITDA also reached a record $165m for the 12 months ended 31 December, up from $155.6m.

The company's adjusted EBITDA margin, excluding the United States, was flat year-on-year, but 1.5 percentage points lower on a reported basis as a result of increased investment in the US to support the launch of SI Sportsbook.

Adjusted basic earnings per share remained stable at 27.3 cents, and basic earnings per share rose to 18.6 cents from 3.1 cents.

888 reported "strong" cash generation and a "robust" balance sheet, with cash and cash equivalents rising to $174.5m from $148.2m year-on-year, excluding customer balances.

The board declared no final dividend, given the potential capital requirements of its pending acquisition of William Hill Europe from Caesars Entertainment, as it announced in September in a deal worth a reported £2.2bn.

Looking ahead, 888 reported "improved momentum" since the end of 2021, with average daily revenues through January and February up on the fourth quarter.

"2021 was a very successful year for 888 as we continued to position the group to become a global leader in online betting and gaming," said chief executive officer Itai Pazner.

"It was another record year from a financial perspective, and we have truly transformed the scale of the business over the past two years.

"This step-change in scale has come from a clear market focus on regulated markets, which now make up three quarters of revenue, and where we are seeing really positive market share trends."

Pazner said that alongside the strong organic growth and operational progress, 2021 was a "busy year" for strategic expansion, including the long-term strategic partnership with Sports Illustrated and launch of SI Sportsbook, the announcement in September of its proposed acquisition of William Hill, and the sale of its bingo business as it looked to increase focus on its core consumer strategy.

"Given this strong financial and operational performance, the board remains confident that, with 888's advanced technology, products and diversification across markets, the group is well-positioned to deliver long-term sustainable growth for all its stakeholders into the future."

At 0935 GMT, shares in 888 Holdings were down 2.33% at 188.7p.

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