888 ups the ante on sports to improve mood after failed Hill tilt

A new dash into sports betting and strong casino winnings lifted first-half results from 888 Holdings, helping to make up for its failed plot to buy William Hill.

Revenue in the first six months of the year hit $262m, a 19% increase on the same period last year, as casino revenue leapt 31% to $137.4m and sport by 63% to $25m.

Revenue from regulated markets increased 29% and now represents 63% of group revenue, up from 58% a year ago thanks to strong performances in the UK, Spain and Italy as well as the recent launch in Denmark.

Despite adverse currency effects, profit before tax was lifted 39% to $27.8m, with earnings per share up 39% to 6.1 cents.

Third-quarter trading has started well, with average daily revenue up 15% on what was a strong previous year and 22% higher on a like for like basis.

"With this strong momentum the board remains confident of delivering against expectations for the full year," said chief executive Itai Frieberger.

As the attempted joint bid with Rank Group for William Hill indicated, sports betting was said to now be a "major growth opportunity for 888 both in terms of revenue and customer acquisition", which has been reflected in this segment reported separately after previously being included as part of the group's 'emerging' offering.

Sport's performance in the period was aided by increased spending on marketing, which helped the group enjoy a very successful Euro 2016, following launches into Spain in the second half of 2014, Denmark towards the end of 2015 and Italy during the first quarter of this year as well as continued investment in new betting options.

On the outlook, Feiberger said 888 "has a clear organic growth strategy and we will remain focused on expanding the group's presence in regulated markets, exploiting opportunities across product verticals - with Sport in particular a key area of focus and investment - and appraising strategic M&A opportunities".