888 Holdings recently provided a trading update, announcing a 2% revenue increase in the first quarter of 2024 compared to the last quarter of 2023.
The company highlighted that this growth was driven by positive performances in several of its operational markets.
The total revenue for the quarter was just above the forecasted range of £420 million to £430 million. In the UK and Ireland, although the overall online revenue saw a slight 1% drop quarter-over-quarter, this was mitigated by a 4% increase in gaming revenue, spurred by heightened customer activity during the Cheltenham Festival.
888 anticipates this region to experience a return to year-on-year revenue growth starting from the second quarter, supported by robust player engagement, new product launches, and the effects of safer gambling regulations becoming fully integrated.
Internationally, 888’s online business witnessed a 6% sequential increase in revenue, thanks to substantial compliance changes initiated in February 2024.
This uplift was particularly noticeable in February and March, where the company saw a 4% growth, benefitting mainly from strong performances in Italy, Spain, and Denmark.
However, the retail segment of the business did not perform as well, with a 7% decrease in revenue, reflecting a strategic reduction in shop numbers and a challenging comparison base from the previous year.
888’s CEO, Per Widerström, expressed satisfaction with the quarterly performance, stating, “I am pleased to report that Q1 2024 revenue was slightly ahead of our guidance. Strong player volumes converted into improved revenue run rates.”
He added, “Having lapped various regulatory and compliance changes during the quarter, and with increased marketing investment supported by an exciting product pipeline, we remain confident in a return to growth from Q2 2024.”
The company is also undergoing significant strategic changes, including a proposed rebranding to Evoke plc, aimed at better reflecting its multi-brand operational strategy.
This change is pending shareholder approval at the next AGM scheduled for May 13.
Despite these positive developments, the full-year results for 2023 were mixed.
While revenue increased by 37.1% to £1.70 billion, and adjusted EBITDA grew substantially, net losses decreased but still stood at £56.4 million, and adjusted profit after tax dropped by 25%. Widerström described the year’s results as “disappointing.”
Adding to its strategic maneuvers, 888 has agreed to sell select US B2C assets to Hard Rock Digital, with the deal expected to be finalized by Q4 2024, pending regulatory approvals. This sale follows a strategic review launched in March aimed at optimizing the value of the group’s US operations.
Lastly, 888 received a positive update from the Gambling Commission, which decided to take no regulatory action following a licence review initiated due to a management takeover attempt by FS Gaming.
This ensures that 888’s UK operations will continue without immediate regulatory challenges.