In a recent financial update for the third quarter of 2023, 888 reported a decline in revenue. The internationally acclaimed company, known for its ownership and operation of distinguished brands such as 888, William Hill, and Mr. Green, disclosed that it generated Q3 revenue of $494.4 million during the three-month period concluding on Sept. 30, down 10% year-on-year.
This revenue downturn is attributed to several factors, including compliance changes in dotcom markets, with a particular focus on the Middle East region. These changes resulted in a slower-than-anticipated recovery in both customer activity and revenue. The impact is notable in the figures, with a 2% decrease in average monthly active users and a more substantial 19% decline in revenue.
While 888 Holdings continued to witness robust customer engagement in the UK, marked by a notable 17% surge in average monthly active users, the company faced revenue challenges. The ongoing impact of safer gambling changes and a refined marketing strategy contributed to a decline in revenue. Additionally, 888 encountered a lower betting net win margin due to favorable sports results in September.
Despite the drop in revenue, 888 asserts that the underlying trends and performance drivers remain consistent. On a more positive note, the company reported growth in its retail division, where revenue increased by 1% year-over-year. This increase was primarily attributed to enhanced product offerings resulting from investments in gaming cabinets and Self-Service Betting Terminals (SSBTs).
The group has projected a continued revenue decline for the fourth quarter, expecting a mid-single-digit decrease. Additionally, it disclosed that its adjusted EBITDA margin for the fiscal year 2023 would fall within the range of 18% to 19%.
Regarding the situation in Israel, 888 Holdings has made the safety and well-being of its 500+ employees in the country and their families a top priority. The company reported that it has activated its business continuity plans, which are functioning as intended, with no significant disruptions reported.
Per Widerström Resumes Duty as 888 CEO
888’s recent trading update comes after the official commencement of Per Widerström’s tenure as CEO of the company. Although 888 had initially announced Widerström as its new CEO in July 2023, his appointment became effective on Oct. 16. This appointment followed deliberations, as certain shareholders from FS Gaming had advocated for their candidates to fill key leadership positions within the British organization.
“I am very excited to have joined the 888 Group as the new CEO,” Widerström said. “I have already been struck by the strength of the Group’s assets and its clear potential, as well as the ambition of our team.
I am happy to note that despite the regulatory challenges the Group has faced this year, the hard work by the team is already showing signs of results meaning that we head towards the end of the year with positive momentum, and well placed to grow in the coming years.
This is a business with a very strong foundation for profitable growth. But there are clearly also several areas for improvement which we will focus on to unlock our full potential and drive value creation.
I am looking forward to working closely with our fantastic people in the Group, the talented executive team and the Board to ensure we are in the best possible position to deliver our plans and maximize value creation.”
The 57-year-old Swede brings more than 17 years of experience in the online gaming industry to the organization. He takes the reins from Lord Mendelsohn, who served as an executive chair following the departure of former 888 Holdings CEO Itai Pazner.
Pazner led the company for four years before stepping down. Mendelsohn will transition back to a non-executive director within the company, a role he was initially appointed to in Sept. 2020.
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