888 Holdings sees drop in UK revenue as impact of affordability checks hits home

888 Holdings suffered a seven per cent year-on-year drop in revenue over the last three months, partly driven by the ongoing impact of affordability checks, which the company described in a statement as 'enhanced player safety measures'.

The owner of William Hill announced group revenue had been £449 million for the three months up to September 30, but that UK online revenue was down 13 per cent compared to the same period last year as punters spent 14 per cent less on betting on average as a result of the “introduction of more stringent measures through [the final six months] of the prior year”.

888 completed its purchase of William Hill’s non-US assets for £1.95 billion in July and Itai Pazner, the group’s chief executive, said a “rapid” integration of the two firms would allow the company to benefit in the second half of the year.

However, Pazner highlighted the challenges 888 were facing on increased player safety, while the gambling sector is also waiting for the white paper on the review into the 2005 Gambling Act to be published by the UK government.

Pazner said: “Revenues during the third quarter continued the trends we have seen in recent quarters, with relatively resilient trading across our main international markets and in our retail estate, but continued pressure on our UK online revenues in light of the ongoing impact of the enhanced player safety measures.

“We are changing the mix of our business to a lower spending, more recreational player base that gives us confidence in the long-term potential for our UK business.”

Analysts from Goodbody described the update from 888 as “somewhat mixed”, while Regulus Partners said the group should focus on boosting William Hill’s online presence rather than focus too much on its retail betting shop estate.

“These strategic levers will decide whether 888 can grow the key UK market or see it sink the ship, in our view,” Regulus added.

Shares in 888 closed at 91.40p, up 1.33 per cent on the day.

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