A prominent online gaming company, 888 Holdings, which possesses renowned brands such as William Hill and Mr Green, experienced a minor decline in their earnings for the year 2022. Their revenue reached £18.5 billion, equating to roughly $22.6 billion in US currency, indicating a 3% reduction compared to the preceding year.
This announcement coincided with the news of their Chief Financial Officer’s resignation.
Although their total revenue aligned with their anticipations, there were notable fluctuations within the company’s performance. Online earnings faced a setback, plummeting by 15% to £13.3 billion. This decline was partially attributed to 888’s proactive measures to enhance player protection protocols in the UK, in addition to the closure of the Netherlands market.
Conversely, their physical betting establishments witnessed a surge in income, generating £5.19 billion, representing a 54% increase compared to the previous year. This growth can be ascribed to the fact that their shops remained operational throughout 2022, unlike in 2021 when they encountered pandemic-induced closures.
Examining the final quarter of 2022 specifically, 888 recorded £4.58 billion in revenue, meeting their forecasts but still reflecting a 3% year-over-year decrease. Their retail division maintained its strong performance, bringing in £1.31 billion, a 5% rise compared to the last quarter of 2021.
Nevertheless, online revenue for the same period experienced a 5% dip, reaching £3.26 billion. While 888 witnessed robust performance in several regulated markets, this was counterbalanced by the previously mentioned player safety measures implemented in their UK online operations.
The head of 888, Itai Pazner, remarked on the firm’s fiscal standing: “The final quarter of 2022 witnessed our group make rapid strides in merging the two highly synergistic enterprises, and we have commenced transitioning Mr Green to our exclusive worldwide technological framework, aligning with the strategic course we recently detailed at our Capital Markets Day.
“Income in the fourth quarter gained from sustained robust activity in physical locations and a stable showing digitally. As previously communicated, we continue to observe strain on our UK internet earnings, mainly due to the ongoing effects of the heightened user protection protocols, but I am optimistic that we are constructing a durable, prominent enterprise for the times ahead.”
Furthermore, 888 declared an alteration to its Board of Directors, with Yariv Dafna departing from his position as CFO and Executive Director, effective the close of March 2023. The Board has set in motion the search for his replacement.
Addressing the board transition, Pazner stated: “The Board and I want to express gratitude to Yariv for his substantial input to 888, particularly for the pivotal part he assumed in the successful culmination of our transformative union with William Hill and spearheading the recent prosperous implementation of 888’s external debt financing.
“On behalf of the entire 888 team, I extend my best wishes to him in his future pursuits.”