Operator News
888 ahead of guidance range as online gaming bridges retail gap
By Phil - 19 April 2024
In a first quarter update, 888, whose brands include William Hill, 888 and Mr Green, said its revenue of £431m was slightly ahead of the £420 to 430m guidance range previously outlined at the FY23 Results
on 26 March 2024.
Revenue was up two per cent compared to Q4 2023, reflecting a continuation of positive sequential quarter-on- quarter trends. The group continues to expect revenues to return to year-on-year growth from Q2 2024 onwards, with full year 2024 revenue growth expected to be consistent with the mid-term target of five to nine per cent annual growth.
The UK and Ireland continued their strong customer engagement with average monthly actives up nine per cent. Revenue was down by one per cent with a return to growth in gaming, up four per cent, more than offset by reduced sports revenues, primarily driven by increased customer investment across the Cheltenham Festival relative to the prior year. Revenues are expected to return to year-on- year growth from Q2 onwards driven by strong customer engagement, new product launches, and the annualization
of safer gambling changes.
The international segment continued its positive sequential growth with Q1 2024 revenues six per cent higher than Q4 2023. Following the annualisation of significant compliance changes from February 2024, the segment returned to year-on-year growth with four per cent growth in February and March, driven by the Core markets of Italy, Spain and Denmark.
Retail revenues were down seven per cent, reflecting shop optimisation and the challenging basis of
comparison, with Q1 2024 revenue consistent with Q4 2023.
Per Widerström, CEO of 888, commented: “I am pleased to report that Q1 2024 revenue was slightly ahead of our guidance, with strong player volumes converting into improved revenue run rates. Having lapped various regulatory and compliance changes during the quarter, and with increased marketing investment supported by an exciting product pipeline, we remain confident in a return to growth from
Q2 2024. I was delighted to outline our multi-year value creation plan alongside our full year results in March, and am pleased to report a strong quarter of progress against these plans. We are moving decisively and at pace to position our company for long-term success, and I look forward to providing further updates about our progress in the coming months.”
