888 Posts Record Figures Despite Decline
Big time global casino games operator 888 Holdings may have experienced a slight decline in revenue income during 2018, but such was the nature of its landslide success, that it still managed to post record figures for the most recent financial year.
When compared to the previous year, total revenue income had dropped from $541.8 million to $540.6 million, a decline of 2% overall. The main downward drivers were B2C and B2B business operations, with revenue from its Dragonfish arm of operations down by a slightly concerning 8% in total.
Dragonfish Hardest Hit
888’s B2C arm was mostly affected by Poker and Bingo. Poker revenue was down by a massive 37%, and Bingo fared only slightly better, having shown a 17% decline. Casino games and sportsbetting were responsible for much of the light in the gloomy tunnel, with casino revenue having been on the upswing by some 8% and sports by 6%.
But what then of Dragonfish? According to the operator, a number of contributing factors must be taken into consideration and seen for what it was. Regulatory changes in the UK, further complicated by the ever-looming threat of Brexit getting ready to rock the boat at any minute, were just some of the reasons for the Bingo product’s poorer performance.
Also, according to a company spokesperson, the lower revenue income curve wasn’t helped by the fact that former B2B partner Cashcade had decided to terminate its working agreement with 888, and be integrated with its GVC parent-platform instead.
Pazner Satisfied With Strategic Approach
But, as is any effective operation’s want, it wasn’t a case of merely sitting back and hoping on better days to come. 888 managed to stave off many of the effects of the decline in revenue income by having adopted a pro-active approach by cutting down considerably on expenses.
Operating expenses were cut by a cool $1 million, and research and development expenses by an even more impressive $2.4 million. Trimming the fat has always been a good way to mitigate a lower income curve. Marketing and selling expenses too, had been much lower than the year before, and gaming duties provided even more breathing room, being down from $75.2 million in 2017 to $69.6 million in 2018.
According to CEO Itai Pazner, the group’s performance is viewed as very satisfactory overall. He complemented his team on the effective implementation of a strategic approach towards driving down expenses without compromising on quality of product or service.