Fall in Q3 Revenue for 888

888 have reported a fall in revenue for the third quarter of this year (Q3). They are confident though that the final quarter will produce figures comparable to the same time period in 2021.

They have reported group revenues of $507.6m(approximately £449m) for Q3 and that is a 7% fall from the figures recorded in the same quarter in 2021.

888 now owns William Hill UK and William Hill International. Their revenue figure of $367.4m (£325m) was $39.6m (£35m) lower than last year for the corresponding period. Itai Pazner is the CEO of 888. He said that they have “continued to make rapid progress in integrating these two market-leading and highly complementary businesses.”

Why have the revenue figures fallen? 888 say that reasons are the impact of UK player safety measures and the closure of their Netherlands business More money has had to be spent on ensuring customers are safe. Earlier this year, 888 were fined £9.3m by the UK Gambling Commission.

If the UK and the Netherlands are excluded, their online revenue is pretty much the same as for Q3 in 2021.

It’s the same situation regarding retail revenue which is £140.1m. The amount would have been higher but for losing approximately $4.5m (£3.97m) when their shops were closed due to the death of Queen Elizabeth II and sporting fixtures being postponed. That included a whole weekend of Premier League games.

The CEO added that revenues during Q3 “continued the trends we have seen in recent quarters, with relatively resilient trading across our main international markets and in our retail estate.”

888 are confident in the long-term potential of their UK business.Their CEO commented that “we are changing the mix of our business to a lower spending, more recreational player base.”
Overall revenue was $1.57bn (£1.38bn), compared to £1.62bn (£1.43bn) in the corresponding period last year. Their two William Hill businesses both saw revenue declines of 24%.

The company has also been giving details of their financing. To fix interest costs in their dollars, pounds and euros debt holdings, a “series of hedging arrangements” have been entered into.

Regarding financing, 888 has entered into a “series of hedging arrangements” that will fix interest costs on its current dollars, pounds, and euros debt holdings.

2023 is expected to see a total of £150m being paid. Despite this, 888 believe “the operating model of the enlarged business is appropriate to address these near-term headwinds” while still being able to “deliver on the strong potential” of their now larger business.