Amidst the current war conflict, 888 Holdings Plc, known as "888" or "the Group," reports that it does not anticipate significant economic consequences. The globally renowned betting and gaming company remains focused on its financial performance despite the regulatory and compliance challenges it has faced this year.
For the third quarter ending on September 30, 2023, 888 reports revenues of £405.0 million, representing a 10% decrease from the previous year. Despite this decline, the company has implemented continuous improvements in the sustainability and quality of its business, resulting in a positive short-term impact.
The UK&I Online market shows strong customer engagement with a 17% increase in average monthly actives. However, revenues decreased by 10% due to the ongoing impact of responsible gambling changes and a more refined marketing approach. This, coupled with a lower-than-expected net betting win margin, was particularly evident in UK football during September.
Despite customer-friendly sports results, the Retail sector experienced robust performance driven by an enhanced product offering through investments in self-service betting terminals and gaming machines. This led to a 1% increase in revenues compared to the previous year.
Internationally, there was a 2% decrease in average monthly actives and a 19% reduction in revenues. This decline is attributed to the ongoing impact of compliance changes in online markets, particularly in the Middle East. The recovery in revenues and customer activity has been slower than initially anticipated.
Despite regulatory challenges, 888 is moving forward with its synergy delivery plan and has achieved significant cost savings that have helped mitigate the impact of regulatory and compliance changes.
Regarding the situation in Israel, where over 500 Group colleagues reside, their safety and well-being have been prioritized following the outbreak of the war conflict. Business continuity plans have been successfully activated, and no significant impact on business operations is expected.
In summary, 888 does not anticipate significant economic consequences as a result of the current war conflict and maintains its expectations for the fiscal year-end. The company projects a mid-single-digit decrease in Q4 revenues and an Adjusted EBITDA Margin of 18-19% for 2023.
888 CEO Per Widerström expressed optimism about the company's future, highlighting the strengths and potential of the Group for profitable growth despite current challenges.
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