888 reports 13 per cent drop in revenue for H1
888 has reported revenue of £332.1m for the first half.
UK.- The online gaming group 888 Holdings has reported a drop in revenue for the first half, partly due to the introduction of more safer gambling policies. It reported revenue of £332.1m, a drop of 13 per cent year-on-year.
The drop in revenue was caused by the operator’s exit from the Dutch market following the launch of regulated igaming, but also by a steep 25 per cent drop in revenue in 888’s UK home market. The operator said this had been expected and was partly due to new safer gambling policies in anticipation of tougher regulation as well as market conditions. Elsewhere revenue grew by 2 per cent.
EBITDA was down 29 per cent at £50m, at least partly due to costs associated with the launch of the SI Sportsbook in the US states. Profit was down 66 per cent at £14.4m.
888 CEO Itai Pazner said: “The group’s financial performance in the period primarily reflects market conditions in the UK. However, we believe the proactive actions we have taken to increase player protections and drive higher standards of player safety have put the group in an even stronger position for the future.”
888 transformation in H1
The period saw 888 sell off its bingo business but take on William Hill’s European assets, the results of which aren’t included because the acquisition was completed after the end of the first half.
Pazner said: “The combination with William Hill, which we completed soon after the period ended, transformed the group and creates very strong foundations to support our ambitious growth plans.
“This combination of two exceptional and complementary businesses creates one of the world’s leading online betting and gaming groups with superior scale, leading front-end and back-end technology, increased diversification across products, markets and channels, and a world-class team.”
Pazner added: “In the second half of 2022, our main focus is on integration, delivering on our synergy plans, and driving higher profitability across the business. This focus on integration, execution and de-leverage will unlock the huge potential from the enlarged business.
“These actions will position us to take advantage of significant growth opportunities ahead of us, as we leverage our leading technologies to create a best-in-class global betting and gaming platform, and our portfolio of world class brands, to grow market share and profitability in some of the most attractive markets in the world.”
Last month, 888 Holdings announced its new leadership team after completing its £1.95bn acquisition of William Hill’s non-US assets, including the brand’s UK retail estate. Itai Pazner remains chief executive with Yariv Dafna as group CFO.
They lead a new C-level team comprising a mix of 888 and William Hill executives. Vaughn Lewis, who joined 888 from Flutter Entertainment last year, leads international growth initiatives as chief strategy officer.
