888 regulatory shift continues to impact revenues

888’s shift away from dotcom markets is continuing to impact the group’s revenues, which for FY23 were down by eight per cent year-on-year at £1.7bn.

The William Hill owner said this shift impacted revenues across the year by £80m but added that around 95 per cent of revenue in the period was generated from regulated and taxed markets.

Indeed, while international revenue was down by 16 per cent to £517m, 888 said revenue in its core markets of Spain and Italy grew by double digits.

The picture was more mixed in 888’s UK and Ireland business, with online revenue dropping eight per cent to £658m but retail revenues improving by three per cent to £535m.

888 said revenue was further impacted by safer gambling changes and a refined marketing focus. Overall, it said these changes “have created a higher quality and more sustainable business mix.”

888 CEO Per Widerström said the group made “important strategic and operational progress” in 2023 despite “significant regulatory and compliance headwinds.”

He said the business has “enhanced its foundations for sustainable and profitable growth.”

But he added that the financial performance of the group “must improve,” calling for a “leaner, more agile and more effective organisation structure” to result in “material value creation and significantly higher profits” in the coming years.

Quarter-on-quarter, revenue of £424m in Q4 was five per cent higher than Q3 2023, with actives up 5 per cent year-over-year.

888 said it will outline its plan for between 2024 and 2026 at its full-year results release in late March.