888 backed for growth amid revenue fall

New 888 CEO Per Widerström has said he sees “clear potential” and “positive momentum” as the group announced a 10 per cent year-on-year revenue drop in Q3.

Widerström took charge of 888 on Monday, taking the reins at a pertinent time for the group.

The latest trading update tallies with 888’s expected Q3 performance update in late September which forecasted the 10 per cent drop in revenue.

But 888 said the “trends and drivers” of the £405m in revenue were “consistent” with “significant and ongoing improvements” being made to the business which are “impacting performance in the short-term.”

Average monthly active online players in the UK and Ireland for 888 were up 17 per cent, while the group reported a “strong underlying performance” in the retail sector driven by investment in SSBTs and gaming cabinets.

Average monthly actives in the International segment dropped by two per cent and revenue dropped 19 per cent, which 888 said was due to compliance changes in dotcom markets, particularly the Middle East.

Widerström said: “This is a business with a very strong foundation for profitable growth. But there are clearly also several areas for improvement which we will focus on to unlock our full potential and drive value creation.

“I am looking forward to working closely with our fantastic people in the group, the talented executive team and the board to ensure we are in the best possible position to deliver our plans and maximise value creation.”