888 reveals post-close trading update, enacts changes

888 Holdings has revealed its post-close trading update and informed investors and stakeholders about the financial performance during the period spanning 12 months through December 31, 2022.

The company, which is known for a number of global brands, such as William Hill, SI Sportsbook, Mr Green, and the namesake 888 brand, has dug into the full-year results and offered further insight into its operations, factoring in the acquisition of the non-US business assets of William Hill, which was completed on July 1, 2022.

888 offered insights into its operations for both the financial year and the fourth quarter of the year. The Q4 revenue was in-line with expectations, posted at £458m, or 2% better than the results in Q3 2022, the company informed.

Online revenue remained stable, although it dropped by 5% on a year-over-year basis in the fourth quarter. Retail revenue went up by another 5% year-over-year and 6% compared to Q3 2022. 888 saw the World Cup as a driver of strong results in the fourth quarter. The company noted that the event was an important driver of both new customers and their retention, alongside further engagement with existing customer bases.

A metric described as "online player days" at the William Hill during the World Cup went up by 22% compared to the Euro 2021, another flagship soccer event linked to increased betting activity in general.

As to the full year, the revenue reached £1.8bn, largely in line with the company’s guidance. Online revenue went down by 15%, however, to just £1.3bn. The decline was linked to evolving regulatory climates in markets such as the Netherlands and the United Kingdom.

The company also announced that Yariv Dafna, the company’s Chief Financial Officer, and Executive Director, will be stepping down from his responsibilities. Dafna has been praised for his contributions to the company and hailed for the significant contributions he mad made towards the company, including its recent acquisition of William Hill, and its integration with the rest of the company.

He will take his final leave on March 31, 2023, giving the company sufficient time to find and select a worthwhile successor. As to 2023 in general, the company is cautious, arguing that revenues could be lower by a single-digit percentage. However, the company is on track to realizing a much grander goal which sees it reach £2bn in revenue in 2025.

The company assured investors in November that debt reduction measures are on their way and stakeholders have nothing to worry about.