One of the best-known brands in online bingo saw its performance subdued in the first quarter of 2013, according to a trading update from 888 Holdings plc.
In its Q1 2013 Key Performance Indicators and Trading Update, 888 reports increased revenues almost across the board.
The launch of slots to the Italian market took casino revenues 13% higher to $48 million, winter marketing activities drove poker earnings up by 15% and ’emerging offerings’ were up 27% thanks to 888’s entry into new sports markets.
However, bingo revenues were down 12% year-on-year at $11.9 million in Q1.
CEO Brian Mattingley glossed over this, calling the figures “a fantastic set of results across all key metrics”.
But the bingo performance is bound to be disappointing for the brand, which operates B2C online bingo sites including the hugely popular 888ladies.
At $11.9 million, the first-quarter bingo result is actually up sequentially from $11.6 million in Q4 2012; however, that was the first time it had dipped below $13 million since the third quarter of 2010, and the worst result since Q1 2010.
The last two quarters also mark a return to volatility for 888 Holdings’ bingo revenues, which had stayed between $13.1 million and $13.6 million since Q2 2011 up to and including Q3 2012.
Although seasonal effects may be partly to blame for the recent pattern, and revenues have held up well given the ongoing economic turbulence and the more casual nature of bingo, investors are likely to be concerned at the reduced level of consistency in 888 Holdings’ bingo performance.
In other areas of the group’s operations, though, growth remains positive, making for an attractive investment opportunity in general.
At $91.8 million in total revenue in Q1 2013, earnings were up by over 10% over the same period of the previous year.
Total revenues rose 42.5% between the first quarters of 2011 and 2013, and by more than 56% since Q1 2010.
888 Holdings are still clearly on the up, and early reports from April so far suggest that the trend is continuing.
According to the group: “The second quarter has started in line with expectations where trading reflects the historical seasonal pattern.
“Daily average revenue during the first 20 days of April is more than 3% above April 2012.”
Casino and poker performance is driving this growth, but with more new customers and increasing deposits, investors in the online bingo industry will be watching closely for a return to form from 888 Holdings.
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