888 Provides Trading Update and FY23 Guidance with Focus on Long-Term Growth
888, a prominent betting and gaming company known for brands like William Hill, 888, and Mr Green, has issued a trading update and FY23 guidance.
The update highlights a mixed performance across the Group, with Q3 2023 revenue expected to decline by around 10% to approximately £400 million. The company emphasizes its commitment to enhancing sustainability and the quality of its business mix, driving strong growth in active customers despite short-term performance challenges.
Mixed Performance: Q3 2023 revenue is projected to decrease by around 10% to £400 million, reflecting mixed performance. The Group attributes this decline to several factors, including ongoing compliance changes in dotcom markets, customer-friendly sports results, and the impact of safer gambling measures in the UK.
Strong Retail Performance: Despite customer-friendly sports results, the retail segment has performed well, with revenues broadly stable compared to the previous year. The company maintains its expectations of mid-single-digit revenue growth in the full year for the retail segment.
Financial Position: As of September 22, 2023, the Group had approximately £162 million in cash (net of customer balances) and undrawn committed facilities of £150 million, resulting in total liquidity exceeding £300 million.
Outlook and FY23 Guidance
The Group anticipates that Q4 2023 revenues will be sequentially higher than Q3 2023 but lower year-on-year by a mid-single-digit percentage. The focus for FY23 is on sustainable growth, with an expected Adjusted EBITDA margin of approximately 18-19%.
While significant cost savings have been realized through synergy delivery, additional savings will be reinvested in growth initiatives. The Group aims to achieve its 2025 targets, which remain unchanged.
The company announced also new leadership with Per Widerström as the incoming CEO and Sean Wilkins as the new CFO, starting in mid-October.
888 acknowledges the challenges in Q3 2023 but remains committed to long-term sustainability and growth. The company plans to leverage its new leadership and synergy delivery to navigate the evolving landscape of the betting and gaming industry.