888 Holdings PLC on Wednesday said revenue decreased 10% in its latest quarter despite continued strong customer engagement and underlying trading.
The Gibraltar-based betting operator, which owns the William Hill and Mr Green brands, said revenue decreased 10% in the third quarter of 2023 to £405.0 million from £449 million the prior year.
888 however said this was mainly due to the short-term impact of significant and ongoing improvements to ‘the sustainability and quality of the mix of the business’.
888 Holdings said UK & Ireland Online revenue was also down 10% due to its ‘refined marketing approach’ and to the impact of regulatory changes, alongside a surprisingly low betting net win margin from customer-friendly sports results last month. Customer engagement however remained strong.
888 said its Retail division likewise gave a strong underlying performance, mainly thanks to its improved product offering. International revenue meanwhile was down 19% due to slower than anticipated recoveries from compliance changes in dotcom markets, especially in the Middle East.
Chief Executive Officer Per Widerstrom, who assumed the role on Monday, said he had ‘already been struck by the strength of the group’s assets and its clear potential’. He added that ‘despite the regulatory challenges the Group has faced...we head towards the end of the year with positive momentum, and well-placed to grow in the coming years.’
Looking ahead, 888 Holdings maintained its expectations of a mid-single digit revenue decrease in the fourth quarter, and an 18% to 19% adjusted earnings before interest, tax, depreciation and amortisation margin for 2023.
Additionally, the firm does not expect any ‘significant impact’ on business operations from the conflict in Israel, where it has around 500 employees.
‘[888 Holdings] is a business with a very strong foundation for profitable growth,’ commented Widerstrom. ‘But there are clearly also several areas for improvement which we will focus on to unlock our full potential and drive value creation.’
888 Holdings shares were down 2.8% at 83.35 pence in London on Wednesday.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
