888 Holdings interim profit down 65%

Finance News

888 Holdings announces its financial results for the six months ended 30 June 2022. The acquisition of the international (non-US) business of William Hill completed on 1 July 2022, and as such, the reported interim results, and commentary thereon, reflects 888 only. 

Adjusted EBITDA of £50.0 million (2021: £70.3 million), with the Adjusted EBITDA Margin lower due to continued investment in the US to support SI Sportsbook state launches, together with additional compliance related costs.

Group revenue -13% to £332.1 million, with the majority of the business seeing relatively stable revenues, offset by declines in the UK (-25%) reflecting the implementation of more stringent safer gambling policies, and the closure of the Netherlands. Excluding the UK and Netherlands, revenue was up +2% year over year.

The business is on a stable trend, with Q2 2022 pro forma revenue growth of 1% compared to Q1 2022, including sequential growth in UK Online revenue across both 888 and William Hill brands. Revenue in the second half of 2022 is expected to be in line with revenue in the first half of 2022.

Itai Pazner, CEO of 888, commented: “The combination with William Hill, which we completed soon after the period end, transformed the Group and creates very strong foundations to support our ambitious growth plans. This combination of two exceptional and complementary businesses creates one of the world’s leading online betting and gaming groups with superior scale, leading front-end and back-end technology, increased diversification across products, markets and channels, and a world class team.

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.

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.”