Online operator 888 Holdings saw 13% revenue growth in the first half of 2022, up from £380.9m in the same period last year, partly due to the implementation of safer gambling policies in the UK ahead of expected future tightening of regulations. decreased to £32.1m.
This result does not include earnings from William Hill acquired by 888 on July 1 after the period in question ended.
UK revenues were down 25% year-on-year. This, combined with the withdrawal of the 888 from the Dutch market, accounted for most of the decline. Revenue outside these two markets increased 2% compared to the same period last year. The business previously said it was expected this fall.
888 CEO Itai Pazner blamed UK market conditions for the decline.
“The Group’s financial performance over this period primarily reflects market conditions in the UK.”
“However, I believe the positive actions we have taken to increase player protection and raise player safety standards have put the Group in an even stronger position for the future,” he said. said.
888 has introduced new and safer gambling practices in anticipation of a tougher future regulatory environment in the UK. The white paper on the delayed review of gambling laws is due to be released next month.
Earnings before tax, depreciation and amortization (EBITDA) also decreased by 29% from £70.3m to £50m. The business blamed a drastic drop in support costs and compliance-related costs associated with the launch of its SI Sportsbook product in many US states compared to revenue.
Profit fell a further 66% to £14.4m in the six months from £41.9m the previous year.
Pro forma revenue, which includes William Hill revenue, was down 1%. Online drop revenue fell 21%, mostly offset by the normalization of retail operations following the end of most COVID-19 measures.
Future Plans
The business saw some streamlining during this period as it sold its bingo business, but rested its hopes for future growth on its acquisition of game operator William Hill’s non-U.S. operations from Caesars in July. rice field.
“The integration with William Hill, completed shortly after the quarter, has transformed the Group and created a very strong foundation to support our ambitious growth plans,” said Pazner.
“The combination of these two exceptional and complementary businesses will create a global One of the leading online betting and gaming groups is born.”
Pazner went on to detail the growth strategy for the business.
“Our main focus in the second half of 2022 will be to integrate, deliver on our synergy plans, and improve profitability across the business. I can.”
“These actions will leverage our leading technologies to create a best-in-class global betting and gaming platform and a portfolio of world-class brands to grow market share and create the world’s most attractive We are profitable in some of the most popular markets.”
