888 Public : 2017 Half Year Results



Revenue increased 3% to US$270.1 million (H1 2016: US$262.0 million); on a constant currency basis1 revenue increased 9%



B2C revenue increased 6% to US$242.6 million (H1 2016: US$229.5 million); on a constant currency basis B2C revenue increased 11%



Casino revenue increased 6% to US$146.0 million (H1 2016: US$137.4 million); on a constant currency basis Casino revenue increased 11%



Poker revenue increased 1% to US$42.5 million (H1 2016: US$42.2 million); on a constant currency basis Poker revenue increased 1%



Sport Revenue increased 35% to US$33.7 million (H1 2016: US$25.0 million); on a constant currency basis Sport revenue increased 45%



B2B revenue decreased 15% to US$27.5 million (H1 2016: US$32.5 million); on a constant currency basis B2B revenue decreased 6%



Revenue from Europe (excluding UK) markets increased 24% to US$133.6 million (H1 2016: US$107.5 million) representing 49% (H1 2016: 41%) of Group revenue



Exceptional charges of US$50.8 million during the period, out of which US$45.3 million relate to potential past VAT matters and US$5.5 million in connection with the UK Gambling Commission ("UKGC") settlement



Adjusted EBITDA1 increased 8% to US$47.6 million (H1 2016: US$44.1 million); on a constant currency basis Adjusted EBITDA increased 22% to US$53.8 million



Adjusted Profit before tax1 increased 12% to US$37.6 million (H1 2016: $33.7 million); reported loss before tax was US$17.3 million (H1 2016: profit $27.8 million) as a result of exceptional charges of US$50.8 million during the period



Interim dividend of 4.0¢ per share (H1 2016: 3.8¢ per share)



Strong Sport momentum continues reflecting customers' increasing recognition of 888Sport as a

premium sports betting brand



Revenue from regulated and taxed markets represents 71% on a constant currency basis (H1 2016: 72%) of Group revenue



Mobile driving growth across product verticals and accounting for 69% of UK revenue (H1 2016: 56%)



Continued strong progress in Spain with comprehensive product suite driving revenue up 23%



Excellent momentum in Italy with revenue up 40% supported by the launch of Sport in Q1 2016



Casino, Poker and Sport real money registered customer accounts of 24.6 million, up 6% from 31 December 2016



Further improvements to responsible gaming tools and processes contributing to resolution to UKGC Licence Review

Six months

ended 30 June

20171

US$ million

Six months

ended 30 June

20161

US$ million

Change Constant currency2

Change Reported

Revenue- B2C

146.0

137.4

11%

6%

Casino

Poker

42.5

42.2

1%

1%

Sport

33.7

25.0

45%

35%

Bingo

19.7

23.1

(3%)

(15%)

Emerging Offerings

0.7

1.8

(59%)

(59%)

Total B2C

242.6

229.5

11%

6%

B2B

27.5

32.5

(6%)

(15%)

Revenue

270.1

262.0

9%

3%

Operating expenses3

(68.9)

(67.5)

Gaming duties

(37.4)

(30.2)

Research and development expenses

(17.2)

(15.8)

Selling and marketing expenses

(85.4)

(90.3)

Administrative expenses4

(13.6)

(14.1)

Adjusted EBITDA5

47.6

44.1

22%

8%

Depreciation and amortisation

(9.3)

(9.7)

Finance and other

(0.7)

(0.7)

Adjusted profit before tax

37.6

33.7

12%

Share benefit charges

(4.1)

(3.2)

Exceptional charges6

(50.8)

(2.7)

(Loss) profit before tax

(17.3)

27.8

Adjusted basic earnings per share

10.3¢

7.8¢

32%

Basic (loss) earnings per share

(5.0¢)

6.1¢

Six months

ended 30 June 20171

US$ million

Six months

ended 30 June 20161

US$ million

(Loss) profit before tax

(17.3)

27.8

Finance expense, net

0.7

0.7

Depreciation

3.0

3.9

Amortisation

6.3

5.8

EBITDA

(7.3)

38.2

Exceptional charges

50.8

2.7

Share benefit charges

4.1

3.2

Adjusted EBITDA7

47.6

44.1

1

Totals may not sum due to rounding.

2

Constant currency: 888 reports its financial results in US$ however (i) generates certain revenue streams from customers using other currencies and (ii) incurs costs in various currencies. Due to the strong US$ in H1 2017 compared to H1 2016, reported revenue and profit were adversely impacted. Constant currency has been calculated as follows: (i) Revenue: with the exception of Poker, by applying 2016 exchange rates to revenue generated during 2017. Poker revenue was also adversely impacted given that many Poker customers fund their US$ bankroll using other currencies, which suffered reduced purchasing power compared to the US$. It is difficult to quantify reliably this indirect impact (other than a small adjustment which was made to Poker revenue generated in Euro) (ii) Costs were retranslated by applying 2016 exchange rates.

3

Excluding depreciation of US$3.0 million (H1 2016: US$3.9 million) and amortisation of US$6.3 million (H1 2016: US$5.8 million).

4

Excluding share benefit charges of US$4.1 million (H1 2016: US$3.2 million).

5

As defined in the table below

6

Exceptional charges of US$45.3 million in respect of potential value added tax relating to the provision of gaming services in Germany prior to 2015 all as described in note 6 and US$5.5 million in lieu of a fine as part of a resolution of the UKGC licence review (H1 2016: US$2.7 million in respect of gaming taxes relating to activity in prior years).

7

Adjusted EBITDA is the main measure that the investor analyst community uses to evaluate the company and compare it to its peers.

http://corporate.888.com/ 888 Holdings Plc:

Itai Frieberger, Chief Executive Officer

Aviad Kobrine, Chief Financial Officer

+350 200 49 800

Hudson Sandler

Alex Brennan

Michael Sandler

+44(0) 207 796 4133

Bertie Berger

Hattie O'Reilly