Operator News
UK – 888 attributes revenue loss to stricter UK gambling policies and Netherlands closure
By William - 15 August 2022
888’s Group revenue has fallen by 13 per cent in the first half of 2022 to £332.1m.
The company posted a 15 per cent revenue decline in the UK following the implementation of more stringent safer gambling policies and also cited the closure of the Netherlands for the overall fall in Group revenue.
Excluding these two markets, revenue was up two per cent year over year.
Itai Pazner, CEO of 888, commented: “The Group’s financial performance in the period primarily reflects market conditions in the UK.
“However, we believe the proactive actions we have taken to increase player protections and drive higher standards of player safety have put the Group in an even stronger position for the future.”
888 also gave an update on the strategic progress and combination with the non-US business of William Hill, which occurred on July 1 – outside of the reporting period.
The Group cited the ‘transformational acquisition’ which positions the group as a top-three operator in the UK and Spain, increasing the mix of regulated and taxed revenues to 85 per cent, and providing a platform for ‘strong future growth’.
888 said there has been ‘excellent progress’ with first phases of integration, including the appointment of a new executive leadership team and the formation of an integration office to monitor the execution of the integration plan.
“The combination with William Hill, which we completed soon after the period end, transformed the Group and creates very strong foundations to support our ambitious growth plans,” said Itai.
“This combination of two exceptional and complementary businesses creates one of the world’s leading online betting and gaming groups with superior scale, leading front-end and back-end technology, increased diversification across products, markets and channels, and a world class team.”
The Group reported that business is on a stable trend, with Q2 2022 pro forma revenue growth of one per cent compared to Q1 2022, including sequential growth in UK online revenue across both 888 and William Hill brands.
Revenue in the second half of the year is expected to be in line with revenue in the first half of 2022. Updating on its long-term debt structure, there is £1.8bn in gross debt, with maturities ranging from five to six years.
Cash interest costs are currently expected to be approximately £65m in H2, and £130-140m in the full year 2023 based on current market conditions and the forward curve.
“In the second half of 2022, our main focus is on integration, delivering on our synergy plans, and driving higher profitability across the business. This focus on integration, execution and de-leverage will unlock the huge potential from the enlarged business.
“These actions will position us to take advantage of significant growth opportunities ahead of us, as we leverage our leading technologies to create a best-in-class global betting and gaming platform, and our portfolio of world class brands, to grow market share and profitability in some of the most attractive markets in the world,” concluded 888’s CEO.
