888 Holdings Navigates Revenue Decline Amidst UK Safety Measures and Netherlands Exit

The gaming conglomerate 888 Holdings, known for brands such as 888, William Hill, and Mr Green, experienced a 7% decline in revenue during the third quarter of 2022, reaching £449 million (approximately $509.4 million USD).

The firm attributed the decrease to two primary reasons: stricter safety measures for online gaming enthusiasts in the United Kingdom and the shutdown of the Netherlands market. Notably, brick-and-mortar revenue remained consistent compared to the corresponding period last year, generating £1.24 billion, even with the three-day closure of establishments during the national mourning period and the rescheduling of athletic competitions.

Although online revenue, excluding the UK and Netherlands, mirrored the previous year’s numbers, the overall digital sector witnessed a 10% fall to £325 million.

Despite these hurdles, 888’s Chief Executive Officer, Itai Pazner, conveyed a positive outlook. He emphasized the rapid assimilation of William Hill following their significant merger, stating that the unified teams are progressing well towards implementing a novel operational framework. He projects that the “rapid victory” synergies already materializing from the merger will enhance their adjusted EBITDA margin for the second half of the year.

The company’s fiscal results for the recent quarter highlighted ongoing patterns. While their primary global territories and physical wagering locations are performing strongly, their digital operations in Britain continue to face challenges due to implemented player protection measures. They are adjusting their approach to better cater to consumers who are demonstrating greater financial prudence and seeking enjoyable, low-risk entertainment options. This fosters optimism regarding the future prospects of their UK operations.”

Pazner further stated: “Moving forward, our priorities are ensuring a seamless integration process, enhancing operational efficiency, and reducing our debt burden. These actions will enable us to fully capitalize on the significant potential of our larger, merged entity.”

“We are constructing a more robust enterprise that will leverage our cutting-edge technology and exceptional brands to establish a dominant position in the global betting and gaming industry. We possess a well-defined strategy to expand our market presence and generate increased revenue in some of the most dynamic markets worldwide.”