888 Holdings Miss on Revenue – Q3 2023 Earnings Report

Disappointing figures as 888 Holdings miss on revenue targets while stock price falls below 2023 start. However, the company is still strong, and its iGaming brands are some of the iGaming industry has to offer! (Images courtesy of 888 Holdings)

888 Holdings, one of the biggest global gaming and betting companies, posted disappointing Q3 earnings. Revenue declined 10% in the UK for the 3 months ending 30 September 2023.

I last reported on 888 Holdings earnings in February – 888 Live Casino Operator Financials. In which there was strong retail growth. Let’s take a look at what’s changed since that report.

Despite the 10% revenue decline, the LSE-listed company expects the full-year EBITDA to be mid-single-digit growth. The drop in revenue (UK/Ireland) was impacted by safer gambling regulations (limits on online bets, affordability checks on customers and new mandatory tax), lower betting margins and fundamental changes to newly legislated marketing practices.

While the revenue dropped from £449.4m to £405.0m year on year, monthly customer averages were another negative factor that compounded poor earnings. The company’s international users fell 2% (revenue down 19%) due to compliance issues for dot-com companies, specifically in the Middle East.

Despite the troubling results, there were some positive takeaways from the Q3 2023 earnings report. On the retail side, the self-service betting terminals (SSBT’s) revenue was up a flat year-on-year 1%. The marginal increase was due to improved products by upgrading their existing SSBTs.  Active customers in the UK were up 17%, but the revenue increase was marginal due to customer-friendly sports results in September (mainly from UK football bets).

The best place to find a full list of the 888 Holding brands is via the best live casino sites webpage here on Livecasinocentral. Lookout for 888Casino, William Hill, and Mr Green. Other brands we generally only mention but do not review also include 888Sport and 888Poker.

To Recap Q3:

What does the future hold for 888?

Recently the company has hired new executive talent, CEO Per Widerstöm and a new CFO, Sean Wilkins that have been brought in to hopefully turn around the troubled group. 888, under the guidance of newly instated executives, are aiming to streamline the company’s operations and tackle the regulatory challenges, to promote positive momentum for Q4. 888 Holdings has a long history and a strong foundation for growth through their affiliate partnerships, Mr. Green and the William Hill integration. These brands are anticipated to exceed expectations in the latter part of the year and meet earnings projections.

Analysts on the other hand have stated that full-year expectations are expected to be a mid-single-digit decline in Q4 revenue and an 18–19 percent adjusted EBITDA margin for FY23, which is down from the original forecast 20%.

Clearly, the next few months will be interesting as 888 strives to implement operational changes to quell investors’ concerns and achieve their ambitious targets. As for the iGaming scene as a while, 888Casino, 888Poker, William Hill and WHVegas, 888Poker, and Mr Green still remain powerhouses of the industry.