The results do not include revenue from William Hill, which was acquired by 888 on July 1st.
Revenue in the UK was down 25% year-on-year, with the majority of the decline coming from the exit of 888 from the Dutch market. Revenue outside of the two markets was up 2% compared to the previous year. The business had previously stated that it would happen this fall.
Itai Pazner blamed the decline on the market conditions in the UK.
Market conditions in the UK are the main reason for the group’s financial performance in the period.
He said that the proactive actions they 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.
New safer gambling practices were put into place by 888 in anticipation of a more stringent regulatory environment in the UK. The Gambling Act review white paper is expected to be released next month, as the country is currently in the process of updating its 2005 Gambling Act.
Earnings before income, tax, depreciation and amortization were down to £50 million from £70.3 million, a 29% decline. The business blamed the large decline in revenue on support costs associated with the launch of its SI Sportsbook product in a number of US states, as well as compliance-related expenses.
The profit for the 6-month period was down to 14.4% from the previous year’s figure.
William Hill revenue, which is pro forma revenue, dropped by 1%. Most of the revenue decline was offset by the normalisation of retail operations following the end of most covid measures.
There are plans for the future
The business saw streamlining in the period as it sold its bingo business but placed its hope for future growth on the July acquisition of the non-US operations of gaming operator William Hill from Caesar’s.
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, according to Pazner.
The combination of two exceptional 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.
Pazner continued to talk about the business’s growth strategy.
Our primary priorities for the second half of 2022 are integration, carrying out our synergy objectives, and increasing profitability across the board. The huge potential from the enlarged business will be unlocked by this focus on integration, execution and de-leverage.
By utilizing our cutting-edge technologies to build a world-class global betting and gaming platform and our portfolio of world-class brands to increase market share and profitability in some of the most lucrative markets, these actions will put us in a position to take advantage of significant growth opportunities that lie ahead of us.
Summary:
For the six-month period ended June 30, the UK-based online betting and gaming company had a net profit of just over 14 million dollars, down from over 50 million dollars in the previous year. The company’s revenue went down by 21%. William Hill’s non-US operations were taken over by 888 in July.