888 plans US market exit despite sports betting expansion
The large gaming corporation 888, which also owns William Hill and other well-known brands, intends to exit the US market.This decision is made in spite of the fact that...
888 reveals Q3 2022 financial update, showing 7% revenue dip
888 Holdings has recently published its financial analysis for the 3rd quarter of the year, detailing a 7% decrease in revenue.
The iGaming operator 888 Holdings has recently publicized their latest financial report. It details the 3rd quarter of 2022 with the headline figure being a 7% drop in revenue caused by its departure from the Netherlands and by the strengthening rules around gambling protections in the United Kingdom.
Taking a look at the report, let’s examine the important numbers first. Total revenue for the period was recorded at 449 million British pounds, a 35 million drop from last year’s 484 million pounds. Additionally, the revenue statistic experienced a decline when looking at the first nine months of the year as well, down by a smaller proportion of 3% from the nearly 1.44 billion pound figure seen the same period the year prior.
Breaking down the revenue numbers, the biggest dip was experienced by the company’s online sector. As mentioned before, the chief causes of the drop are the tightening regulations around online gaming in the United Kingdom and the closure of operations in the Dutch market. In fact, excluding the two turbulent markets, the firm’s online revenue remained the same, while the two markets alone were responsible for a near 10% decline in the sector’s earnings.
The retail vertical of the company, however, stayed flat, earning 124 million pounds. Despite that, it saw a massive increase when comparing the figures originating from the first nine months of the year, as it was recorded at 388 million pounds as opposed to the previous period’s 211 million pound number. That 177 million pound increase amounted to a growth ratio of over 80%, which was likely caused by loosening restrictions at the tail end of the pandemic.
Apart from the revenue figures, the group has not posted any EBITDA or net income figures, though they have posted that their Adjusted EBITDA margin figures are looking stronger than the same statistic for the first half of the year, with further increases expected in the current quarter.
Despite that, the business did talk about its financing situation, stating that they are expecting interest costs to amount to about 75 million pounds in the second half of the year and 150 million pounds in 2023. Additionally, they mentioned that approximately 36% of their debt is in British pounds, 8% is in US dollars, and the remaining 56% is in Euros.
The report also detailed that about 35% of their debts have fixed interest costs and that the earliest maturity date for their credit facilities is over three years away. Furthermore, the company’s gross debt figure is currently sitting at a bit over 1.8 billion dollars, which is split up between seven different lines.
Lastly, in addition to the numbers and statistics the corporation gave an update on their integration with the recently-purchased William Hill. They stated that they are planning to leverage their combined knowledge and resources to develop their operations and ensure a stable and efficient growth path for the group. Moreover, the report stated that there will be further updates published in November on the firm’s Capital Markets Day.
At the end of the report, 888’s chief executive officer, Itai Pazner stated that the company is now focused on further refining their integration with William Hill and on de-leveraging to enable the ever-larger potential of the group to shine.
We are looking to expand our operations and use our larger pool of knowledge, resources and industry-leading brands to establish ourselves as the leader in our industry to expand our market share and get the highest rankings in some of the most significant licensed jurisdictions.
commented the CEO.
888 revenue down 10% in Q3 2023
888 Holdings has experienced a revenue decrease of 10% in the year’s third quarter.This announcement follows a bit over half a month after the gambling firm published a...
