888 Expect Lower Revenues In Trading Update
Online gaming giant 888.com, has today provided insight into expected revenues for the first half of the calendar year, and also offered an overview of general trading performance over the last eighteen months.
The firm, who are headquartered in Gibraltar, have revised their initial projections for the opening 26 weeks of 2022, now suggesting gross gaming revenue will reach circa £330m-£335m, as opposed to an original estimate of approximately £433m. Nevertheless, this adjustment in forecast was based on a set of challenging material changes to marketplaces where 888 operate, and therefore the company’s re-calibrated trajectory is entirely understandable.
The company has licences in many European jurisdictions, and has therefore felt the pinch of a recent wave of tightening restrictions across the continent. In countries such as Sweden and the U.K, both key markets for 888, governments have implemented closer controls on marketing activity, and instructed gaming firms to assume greater levels of social responsibility. True, in recent months, various operators, including 888 Holdings themselves, have been the subject of considerable fines in wake of contraventions to more strictly applied regulations. The business has also temporarily pulled out of the Netherlands, citing changes in the policies of the native Dutch regulator.
For the twelve months to February 2022, the online operator delivered £690m in GGR, which contributed to an EBITDA figure of £109m.
In April of this year, 888 acquired William Hill’s non-U.S assets from Las Vegas-based Caesar’s Entertainment. Its board believes that the international arm of the popular sportsbook will deliver £620m-£630m in GGR for the first six months of the year. Therefore, revenue for the 22-23 financial year is expected to jump significantly.
