The gaming behemoth, 888 Holdings, proprietor of renowned names like William Hill and Mr Green, experienced a minor revenue reduction in 2022, totaling £1.85 billion (equivalent to $2.26 billion). This signifies a 3% decline in contrast to the preceding year.
This revelation coincided with the declaration of their CFO’s exit. Notwithstanding the decrease, 888 conveyed confidence to stakeholders that the overall revenue aligned with their anticipations.
A deeper examination of the figures indicates that digital revenue suffered a setback, plummeting by 15% to £1.33 billion. Several elements contributed to this, including 888’s proactive endeavors to bolster player protection protocols within the UK market and the cessation of operations in the Netherlands.
Conversely, their brick-and-mortar revenue witnessed a substantial surge, reaching £519 million, marking a 54% leap compared to the prior year. This favorable outcome is primarily attributed to a complete year of uninterrupted business activities in 2022, in contrast to the partial shutdowns that affected the initial six months of 2021.
Delving further into the figures, Q4 2022 saw 888 amass £458 million in revenue, fulfilling the board’s projections but still exhibiting a 3% year-over-year decline. Physical retail maintained its robust trajectory, contributing £131 million, a 5% increment.
Nevertheless, digital revenue for Q4 2022 contracted by 5% to £326 million. While 888 observed strong performance across numerous regulated markets, this was counterbalanced by the ramifications of the previously mentioned player security measures implemented within their UK online operations.
Concerning the company’s fiscal performance, 888’s Chief Executive Officer, Itai Pazner, remarked: “Our staff achieved substantial progress in the last quarter of 2022, integrating the highly synergistic Mr Green enterprise into our own. We have commenced transitioning them to our worldwide technological framework, adhering to the strategic blueprint we delineated at our recent Capital Markets Day.
“Our Q4 earnings were bolstered by sustained robustness in brick-and-mortar operations, coupled with consistent expansion online. As we’ve previously stated, UK digital revenues remain affected by regulatory adjustments, including the ongoing ramifications of heightened user protection protocols. Nevertheless, I am optimistic that we are constructing a durable, prominent business for the years to come.”
888 also revealed an alteration to its board of directors, with Yariv Dafna relinquishing his position as Chief Financial Officer and Executive Director effective March 31st, 2023. The quest for his successor is in progress.
Addressing the board transition, Pazner stated: “The Board and I wish to express our gratitude to Yariv for his contributions to 888, particularly his instrumental part in finalizing our transformative amalgamation with William Hill and spearheading the recent successful restructuring of 888’s external liabilities.
“On behalf of the entire 888 organization, we extend our best wishes to him in his future pursuits.”
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