888 Holdings Plc Releases Post-Close Trading Figures for 2023

888 Holdings Plc, a UK-based betting and gaming company that acquired William Hill’s non-US business in 2022, recently disclosed its post-close trading figures. The report highlighted an 8% decrease in the group’s annual revenue for the full year 2023, with notable declines in both the UK online and global markets.

In the fourth quarter, the revenue amounted to £424 million ($538 million), representing a 7% decrease compared to the same quarter in 2022. However, it was 5% higher than the third quarter of 2023, with activities up 5% on a year-over-year basis. Despite the continuous growth in the customer base, 888 is confident in laying the groundwork for sustainable future revenue growth.

The decline in the full year 2023 revenue, which totaled £1,711 million ($2,170 million), was attributed to various factors. These include the shift away from dotcom markets, leading to an approximate £80 million ($101 million) decrease in revenue during the year. Additionally, changes in the customer mix in the UK, measures to promote safe gambling, and marketing shifts towards profitability and sustainable revenue contributed to a “higher quality and more sustainable business mix.”

Throughout the year, approximately 95% of the revenue generated by 888 came from taxed and regulated markets. The UK online segment recorded an 11% increase in the average number of monthly active users, but this was counteracted by an 18% drop in average revenue per customer.

On the retail front, revenue increased by 3% to £535 million ($678 million) compared to the previous year, attributed to product upgrades such as self-service betting terminals and gaming cabinets.

Looking ahead to 2024, 888 Holdings Plc anticipates consistent growth in active players, which will drive strong revenue growth online in both the UK and international segments. The company also expects an improvement in average revenue per user after implementing safer gambling practices, with additional investments in intelligent automation and artificial intelligence-powered data and insights.

While these measures are projected to enhance profitability in the long run, the group also predicts that the 2024 Adjusted EBITDA will be at the low end of the consensus range. CEO Per Widerström emphasized the strategic and operational progress made in the face of regulatory and compliance challenges, and outlined plans to announce the group’s 2024-2026 strategy alongside the full-year results in late March.

Lastly, 888 Holdings Plc recently announced job cuts in Israel as part of its global restructuring plans.

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