888 Holdings Q1 revenue results reveal 18% losses, but the gambling group is confident of future gains with major deals in the pipeline. (Image from Giorgio Tomassetti at unsplash.com)
For 888 Holdings, 2021 marked one of the finest years in its existence, financially. Records had been set all across the yearly financial reports, but in the first quarter of 2022, the trend has not been able to continue. 888 Holdings has released its Q1 financial reports for 2022, and they report a YoY revenue loss of 18%.
888 Holdings is one of the world’s leading brands in the gambling industry, and its presence can be seen just about on every continent. News of an 18% revenue decrease might be surprising when considering the success of last year’s results when overall costs were down, and sales were up, but there were signs beginning to form in Q4 of 2021. The Q4 numbers leaked into Q1 of 2022, and now 888 Holdings will be hoping for a quick turnaround. The standout figure for the first quarter was its total revenue, which stands at $224 million. This is $49 million lower than for the same quarter of 2021.
Not Quite Out of First Gear Yet in 2022 – Increase in Marketing Building a Strong Foundation
The B2C segment for 888 Holdings was 18% down when compared to Q1 of 2021. This segment made up $215 million. B2C gaming accounted for $191 million, while sports betting B2C revenue amassed $24 million, a yearly decrease of 42%.
In this segment, 888 Holdings has pledged a significant amount of its budget to investment for the future. For instance, there were additional costs to build chat functions that contain artificial intelligence, which is intended to improve customer experience and therefore promote growth. Moreover, 888 Holdings has focused heavily on building its brand across the North American sector, most notable marketing itself when launching the WSOP in Ontario, and the WSOP in Michigan. 888 is also likely to launch WSOP Virginia in May.
William Hill Deal Will Sculpt Future 2022 Results – Next 2 Months Will be Pivotal
Things might be moving slower than initially hoped for, but 888 Holdings has made moves to acquire all of Caesars Entertainment’s non-US William Hill outlets. Once news of this broke, 888 Holdings stock outperformed all other iGaming stock.
Certain delays are causing the deal to be completed, but once the UKGC has reviewed the William Hill license, it is likely that the deal will be close to completion. 888 has already set aside some funds just in case it’ll have to pay the governing body additional fees towards the licensing. £15 million has been allocated, but 888 are hopeful that this is the maximum that it could cost.
Moving forward, William Hill is seen as a key part of future plans for 888 Holdings, and it would be in a far stronger position financially with all of William Hill’s European assets under its belt.
B2B Marginally Down Overall – Gains in the US Following Launch in Pennsylvania
B2B operations showed a general decline for 888 in Q1. B2B generated $9 million in revenue, which represents a 6% decrease YoY. Broadway Gaming was sold last December, which had a significant impact on the numbers, and the current environment for gaming in the UK also proved to hinder the overall performance.
The highlight for the segment was launching in Pennsylvania, which made the group some much-needed revenue.
The Full Report Available to the Public: The full report is available through the 888 website. It is clear that numbers are down when compared YoY, but when compared to Q4 of 2021, there is not much in it, as there was a 1% increase in B2C, and a 2% loss in B2B generated revenue.
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