The gaming behemoth 888 Holdings, known for its ownership of prominent brands like William Hill and Mr Green, experienced a minor decline in revenue during the 2022 financial year. Their total revenue reached £1.85 billion (approximately $2.26 billion), marking a 3% reduction from the preceding year.
This financial update coincides with the company’s announcement of their Chief Financial Officer’s impending exit. Despite the slight revenue contraction, 888 Holdings conveyed confidence to investors, stating that their overall profits aligned with anticipated figures.
A primary contributor to the revenue downturn was a 15% fall in digital earnings, amounting to £1.33 billion for the year. This decline can be partially attributed to 888’s proactive efforts to bolster user protection within their UK online platforms, alongside the cessation of their operations in the Netherlands. However, this was counterbalanced by a substantial 54% surge in brick-and-mortar revenue, reaching £519 million. This growth reflects a complete year of physical operations in 2022, contrasting with the partial closures during the initial six months of 2021.
Examining the final quarter in isolation, 888 Holdings recorded revenue of £458 million, fulfilling their forecasts but nonetheless exhibiting a 3% year-over-year decrease. Retail maintained its robust performance, generating £131 million, a 5% rise compared to the concluding quarter of 2021. Conversely, online revenue witnessed a 5% decline, settling at £326 million. 888 attributed this to the repercussions of their previously mentioned player safety initiatives in the UK, which counteracted positive results in other regulated markets.
The head of 888, Itai Pazner, remarked on the firm’s fiscal standing: “Throughout the final quarter of 2022, our group sustained advancements in blending the highly synergistic operations of 888 and William Hill. We’ve commenced transitioning Mr Green to our exclusive worldwide technological framework, a crucial element of the strategic plan we delineated at our recent Capital Markets Day.
“Our Q4 earnings were bolstered by consistently robust activity in our physical storefronts and steady expansion in the digital realm. As previously stated, UK digital income remains affected by regulatory shifts, including the continuous influence of heightened user protection protocols. Nevertheless, I am certain we are constructing a durable, prominent enterprise for the times ahead.”
Separately, 888 declared an alteration to its Board of Directors. Yariv Dafna will be relinquishing his position as CFO and Executive Director effective March 31st, 2023. The Board has launched the quest for his replacement.
Pazner expressed gratitude to Dafna for his tenure: “The Board and I are immensely appreciative of Yariv’s input to 888, particularly his instrumental part in finalizing our transformative union with William Hill and spearheading the recent prosperous restructuring of 888’s external liabilities. On behalf of the entire 888 organization, I extend my best wishes for his future pursuits.”
