888 is targeting sportsbook launches in Italy and Spain with its new platform provider, CEO Brian Mattingley revealed this morning.
The 888 boss said the signing of a contract with a new provider to replace the Blue Square platform set to shut down at the end of May was “imminent”, telling analysts in the company’s Q1 earnings call:
“That provider has a different agenda to that of Blue Square. It will enable us to cover all sports, all products, in a much different spectrum of countries and territories. So for example, in Spain and Italy, we operate without a sportsbook because of the constraints of Blue Square. That would [no longer] be the case.”
Mattingley said that while it “would be rather foolish to believe we would be a bigger player in the league of Coral, Ladbrokes, William Hill, Bet365″, he believed migrating 888Sport to the new platform would present “opportunities for us to become a more serious player.”
The 888 boss also believed these opportunities would be greatest in territories where regulation was sports betting-led.
“We see there are market opportunities, and we will take those opportunities, particularly in moving our business into territories where the sports market is the market which actually predominantly rules the online business and poker and casinos are, if you like, reference points off of the main market. So we will definitely be looking at getting into Spain and Italy”, Mattingley confirmed to analyst Nick Batram of Peel Hunt.
The 888 chief however declined to reveal the identity of the supplier. “[A]s soon as we have got that contract signed we will announce that to the market”. Several sportsbook suppliers are certified for both the UK and Italian markets, including Paddy Power’s provider Openbet.
Mattingley was speaking after 888 unveiled another set of record revenue figures this morning. Group revenue, including a contribution from the Dragonfish B2B arm, was up 9% to US$103m in the three months to 31 March 2013, driven by strong growth from its consumer-facing casino and poker offerings.
Revenue from 888′s flagship casino business was up 13% to US$48m in the three months to 31 March, boosted by the launch of online slots in the regulated Italian market, which took place in early December 2012. Poker revenues rose an impressive 15% to US$24m, credited by 888 to effective marketing campaigns run over the winter.
The contribution from 888′s emerging offering, including 888Sport and its social gaming properties, also grew by 27% during the period due to a strong sports margin, albeit from a lower base.
Bingo revenues, including the 888ladies, Wink Bingo and other brands, however performed less impressively, falling 12% to US$12m. The contribution from Dragonfish also remained flat at US$11m.
Article written by Katy Stirland
