888 Reports Trading Update for Q3-23: Mixed Performance and Positive Momentum
888, one of the world’s leading betting and gaming companies with renowned brands like William Hill, 888, and Mr Green, has provided a trading update for the three months ending 30 September 2023 (Q3-23).
The highlights of this update reveal a mix of performance results.
The group’s performance in Q3-23 aligns with the 28th September 2023 trading update, with reported revenue of £405.0 million, a 10% year-on-year decrease.
This decline in revenue is attributed to several factors, including ongoing efforts to improve the sustainability and quality of the business mix, which are impacting short-term performance.
In the UK&I Online segment, there’s been strong customer engagement, with average monthly actives showing a notable increase of 17%.
However, revenue has seen a 10% decrease, primarily due to the lasting impact of safer gambling changes and refined marketing strategies.
Additionally, lower-than-expected betting net win margins in September, especially in UK football, have affected performance.
Retail and International
The Retail segment has shown strong underlying performance driven by improved product offerings through investments. However, customer-friendly sports results have somewhat offset the gains, resulting in a modest 1% year-over-year revenue increase.
In the International segment, there’s been a 19% decrease in revenue and a 2% decrease in average monthly actives. This drop is attributed to ongoing compliance changes in dotcom markets, particularly in the Middle East, leading to a slower recovery in revenue and customer activity.
Synergy and Cost Savings
Synergy delivery is on track, and significant cost savings have been achieved, partially mitigating the impact of regulatory and compliance changes.
Per Widerström, CEO of 888, expressed optimism despite regulatory challenges. He highlighted the team’s hard work showing positive signs of results, positioning the company for growth in the coming years. He also acknowledged the business’s strong foundation for profitable growth and areas for improvement that will be addressed to unlock the company’s full potential.
Our comment on the article
888’s Q3-23 trading update reflects mixed performance, with declining revenue attributed to various factors including safer gambling changes and customer-friendly sports results. Despite challenges, the company remains optimistic about its potential for growth and profitability, focusing on areas for improvement and value creation.