888 sees revenue fall in Q3
The operator saw revenue decline due to its exit from the Netherlands and stronger safer gambling measures.
UK.- 888 has reported that it expects Q3 revenue to be down by 7 per cent year-on-year at £449m. The drop in revenue is mainly due to its exit from the Netherlands upon the launch of the regulated igaming maket in October and due to player safety measures in Britain.
The figures were calculated on a pro-forma basis absorbing William Hill’s European assets and excluding 888’s former bingo unit, both transactions which were completed in July of this year. The company expects revenue to be down across its business with the exception of the newly acquired William Hill retail estate, which 888 said performed in line with last year despite closures because of the death of Queen Elizabeth II.
888’s own core online operations are expected to see revenue fall by 5 per cent to £148m. William Hill’s online revenue in the UK is expected to be down 14 per cent at £125m, while revenue from William Hill International will be down by 12 per cent at £52m.
Overall online revenue is expected to come in a 10 per cent under Q3 2021, mainly due to its withdrawal from the Netherlands. The Dutch market contributed 6 per cent of 888’s revenue in the quarter last year, and 4 per cent of William Hill’s.
Another factor was an increase in responsibility measures in the UK, the operator said. Stricter measures caused player spend to fall by 14 per cent year-on-year.
888 chief executive Itai Pazner said: “Having completed our transformational combination with William Hill, I am pleased to report that during Q3 our teams continued to make rapid progress in integrating these two market-leading and highly complementary businesses.
“This has enabled us to progress towards our new target operating model while delivering a series of ‘quick win’ synergies that will benefit our adjusted EBITDA margin for the second half of this year.
“Revenues during the third quarter continued the trends we have seen in recent quarters, with relatively resilient trading across our main international markets and in our retail estate, but continued pressure on our UK online revenues in light of the ongoing impact of the enhanced player safety measures.
“We are changing the mix of our business to a lower spending, more recreational player base that gives us confidence in the long-term potential for our UK business.”
Pazner added: “As we look forward, we remain focused primarily on successful integration, execution and de-leveraging in order to unlock the huge potential of our enlarged business.
“We are building a stronger group that will leverage our leading technologies and portfolio of world-class brands to create a leading global betting and gaming company, with clear plans to grow market share and profitability in some of the most attractive markets in the world.”
Last month, 888 announced the launch of its African joint venture, 888AFRICA, which is starting with licences in four East African countries: Kenya, Tanzania, Mozambique and Zambia. It plans to expand further in the region.
The FTSE 250 gambling company, which now owns William Hill and Mr Green in Europe as well as SI Sportsbook in the US, initially has a minority stake in the operation but has the option to increase this up to 100 per cent.
