888's UK revenues plunge 25 per cent as affordability checks take hold

Profits at 888 slumped during the first half of the year, with stricter safer gambling measures hitting revenues in the UK.

888, who last month completed the acquisition of William Hill's non-US business, said on Friday morning that group revenue for the first six months of 2022 had fallen 13 per cent to £332.1 million.

The company said revenues in the UK had fallen 25 per cent to £120.8m "reflecting the implementation of more stringent safer gambling policies".

It added that during the past year the group had implemented a range of additional safer gambling measures "including lower affordability thresholds and reduced slots stakes limits".

Excluding the UK and Netherlands – where the company had to exit the market for regulatory reasons – revenue was up two per cent.

Adjusted profit before tax fell by 66 per cent to £14.4m during the period, while adjusted ebitda (earnings before interest, taxation, depreciation and amortisation) was down 29 per cent to £50m.

However, 888 said the business was "on a stable trend" with growth in UK online revenue across both the 888 and William Hill brands.

Chief executive Itai Pazner said: "The group's financial performance in the period primarily reflects market conditions in the UK.

"However, we believe the proactive actions we have taken to increase player protections and drive higher standards of player safety have put the group in an even stronger position for the future."

888 did not complete the acquisition of William Hill until July 1 and pro forma figures which reflected the first half performance if 888 had owned Hills for that period showed a one per cent fall in revenue to £943.2m and a 26 per cent rise in adjusted ebitda to £142.3m.

Pazner said the William Hill deal had transformed the group and created "very strong foundations to support our ambitious growth plans".

He added: "In the second half of 2022, our main focus is on integration, delivering on our synergy plans, and driving higher profitability across the business. This focus on integration, execution and de-leverage will unlock the huge potential from the enlarged business.

"These actions will position us to take advantage of significant growth opportunities ahead of us, as we leverage our leading technologies to create a best-in-class global betting and gaming platform, and our portfolio of world-class brands, to grow market share and profitability in some of the most attractive markets in the world."

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