888 Suffers Q1 Revenue Fall

888 have seen their year-on-year Q1 revenue fall by 18 per cent. The revenue figure for the three months to 31 March was £172million, that’s compared to the £210million recorded last year
Gaming revenue fell by 14 per cent and for betting, the figure record was 42 per cent lower than last year. This year has seen new casino games launched but why the big fall in betting figures? One major contributor was the fact that there was a 28 per cent drop in stakes.

The corresponding period in 2021 saw record figures in some key markets. Another reason is the withdrawal of 888 from the Dutch market that has seen strict regulation placed on it.

This year has seen 888 launch its World Series of Poker Brand in Michigan and Ontario. Next month sees the launch in Virginia as their overseas expansion continues. Such promotional investment has hit figures.

Their chief executive is Itai Pazner and he is “pleased” with how 888 are progressing. He expects year-over-year revenue growth to take place in the second half of 2022. They will also relaunch in the Netherlands and expect good figures in Ontario, Canada, where the company has just began operating.

One area in which a saving has been made is in the planned acquisition of the non-US assets of William Hill. Their deal with Caesars Entertainment was due to cost them £834.9miilion but will now be £584.9million. The deal is expected to be completed in June of this year.

The reduction is said to “reflect the change in the macro-economic and regulatory environment” since the deal was initially announced. There is also concern over the problems William Hill has been having with the UK Gambling Commission.

This has seen their licence to operate in the UK under review. £15million has been set aside in case any fines are levied on them. 888 know all about that as they were recently fined £9.4million by the Commission.

Overseas expansion is important to the company and Howard Mittman has been appointed as President of their US operations.

It will be his task to coordinate their strategic partnership with Authentic Brands Group (ABG). He’ll be busy with their SI Sportsbook betting product. He is looking forward to taking on the job. He said that: “The partnership with ABG and Sports Illustrated gives us a unique opportunity to deliver world-class betting and gaming products as part of a fully integrated experience with a leading sports media brand.”

Mittman will also be managing the World Series of Poker rooms that 888 currently have. The upcoming launch in Michigan will hopefully add to the success the company are having in America.

Itai Panzer is looking at 888 launching their SI Sportsbook in many more states in the future. As an increasing number of US states legalize sports betting, it’s good news for companies such as 888 and the CEO believes they can “further grow a profitable business” in America.