888 Holdings Navigates UK Headwinds and William Hill Integration in Q3 2022

The gaming behemoth, 888 Holdings, parent company to renowned names like 888, William Hill, and Mr Green, experienced a 7% decrease in earnings for the third quarter of 2022, reaching £449 million (approximately $509.4 million).

The firm attributed the decline primarily to tighter safety protocols for internet gamblers within the UK and their withdrawal from the Netherlands market.

Notably, brick-and-mortar revenue remained stable at £1.24 billion, mirroring the corresponding period last year, despite a three-day suspension in operations during the national mourning period and the postponement of certain sporting competitions.

Digital revenue suffered a more significant blow, plummeting by 10% to £325 million. However, excluding the UK and Netherlands, online earnings actually held steady compared to the preceding year.

888’s Chief Executive Officer, Itai Pazner, conveyed contentment with the company’s advancements, remarking, “Subsequent to the finalization of our transformative union with William Hill, I am delighted to announce that throughout Q3 our personnel sustained swift progress in amalgamating these two industry-leading and remarkably complementary enterprises.”

He proceeded to emphasize the favorable effects of this consolidation, observing that it enables them to optimize processes and leverage “rapid victory” collaborations, ultimately enhancing their adjusted EBITDA margin for the second half of the year.

The third quarter mirrored recent patterns – while core global markets and retail sectors remain stable, our UK digital operations continue to encounter challenges. This stems primarily from the sustained effects of heightened player protection protocols in that area. Our response involves pivoting towards a more casual player demographic. This strategy, coupled with the reduced spending tendencies of these players, reinforces our optimism regarding the long-term prospects of our UK enterprise.”

Pazner elaborated, “Moving forward, our priorities are sharply focused on the seamless assimilation and execution of our current operations, alongside a dedication to debt reduction. This will empower us to unleash the vast potential of our expanded organization.”

“We are constructing a more robust and formidable entertainment entity. We will capitalize on our state-of-the-art technology and globally recognized brands to cement our standing as a worldwide frontrunner in the gaming and leisure sector. Our trajectory is clear: to amplify both market penetration and profitability within some of the planet’s most dynamic markets.”