Despite the 888 live casino operator financials showing a decline from its online businesses, the company is still on top of its game! (Photo by Mati Mango on Pexels)
888 Live Casino Operator, one of the industry’s leading providers, has released its latest financial figures for Q4 as well as revenue figures for its overall 2022 financial performance.
Figures are better than most may have expected and do not reflect the PLC’s stock price, which has seen 75% wiped off its value since September 2021.
Stock prices and revenue are being hit by a barrage of issues that the group is trying to resolve.
The most recent of those involves the suspension of VIP accounts in the Middle East after it found that certain best practices were not adhered to when it comes to anti-money laundering and other compliance processes.
888 says that it believes the problem is isolated to its Middle East operations, and the sums involved represent only 3% of the company’s overall revenue, which will affect January Q1 figures. The problem has also led to the resignation of chief executive Itai Pazner, after four years at the helm.
Despite this set back, via its well-known brands, such as 888Casino and William Hill, it has a strong reputation for social responsibility and is a leader in the responsible gaming space, plus its platforms provide a safe and secure gaming environment for players and B2B partners.
Despite the latest setback, the company’s shares still trade below their all-time highs making it an appealing investment to those who believe in 888 Holding’s potential. And the financial figures below, although not great, are not as bad as one may think despite the under performing stock prices, which you can stay up to date via our bi-weekly iGaming stock price updates.
Current Online & Retail Revenue Figures Reported by 888 Holdings
Currently, the company’s market cap is at 321.81 million GBP and its major brands include 888Sport, 888Casino, 888poker, Mr Green, and William Hill. Its financial figures represent operations via these brands through multiple lines of business, which is predominately B2C customer facing businesses via online and plus retail gambling and land-based betting operations.
- Online Q4 & 2022 Revenue Figures: In the report in Q3, 888 Holdings showed a £ 325 million income, while Q4 was up slightly to £ 326 million despite the loss of its Netherlands business. Overall, 2022 estimates show that the online sector pulled in a total of £ 1.33 billion revenue. An impressive figure, but down year-on-year versus 2021.
- Retail Q4 & 2022 Revenue Figures: Revenue jumped 5.6% on Q3 (£ 124 million) up to £ 131 million for Q4 and represents 25% of 2022’s estimated total revenue of £ 520 million from its William Hill retail and other land-based gambling operations. Yearly figures are also up by 54% on 2021, however, the low performance the previous year was due to closures during the pandemic.
- Total Q4 & 2022 Revenue Figures: From Q1 through to Q4, 888 Holdings shows £ 1.85 billion in revenue from online and retail. This is only a mere 2.6% reduction over 12 months. That’s a large chunk of change, but nothing the company can’t turn around into more positive figures over the course of 2023.
888 Holdings Financial Figures
- Online (2022): £ 1.33 billion
- Retail (2022): £ 520 million
- Total (2022): £ 1.85 billion
- Online (Q4): £ 326 million
- Retail (Q4): £ 131 million
- Total (Q4): £ 457 million
888 Holdings CEO Itai Pazner steps down as money laundering allegations threaten its operations
British bookmaker 888 Holdings (LSE: 888) has announced that Chief Executive Officer and Executive Director Itai Pazner is leaving the company. Lord Jonathan Mendelsohn, the Non-Executive Chair of the Board, will take over as interim CEO until a permanent replacement is found.
In a statement, the bookmaker said that some anti-money laundering and Know Your Customer processes for its VIP customers in the Middle East were not followed. 888’s board has suspended the VIP accounts, it said. The company estimated that the impact would be less than 3% of group revenue, though it will suspend activities in certain markets while investigations take place.
AJ Bell investment director Russ Mould commented: ‘This is a worrying development for the market given the level of regulatory scrutiny that is already being put on iGaming stocks. Combined with the CEO’s immediate departure, this news has further added to concerns about 888.
The British Gambling Commission has issued two fines against 888 since it acquired the UK arm of William Hill in 2021, the latest in March, for social responsibility and money-laundering failings. It is not clear if the latest issue relates to this, but it could raise further questions about 888’s controls and compliance as its UK home market prepares to overhaul its gambling laws around player safety, staking and advertising.
Shares in 888 fell more than 20% on Monday, following the news of Pazner’s departure. The company also reported a 3% drop in 2022 full-year revenue as it tightened online player safety measures and closed its Dutch operations.
Why is 888Casino Still a Strong Brand in iGaming?
888 Holdings has a range of gambling brands in its portfolio and is the world’s biggest gaming operator with the acquisition of William Hill’s non-US business last year.
888 Holdings has a strong operational base and has several advantages over its rivals in the online gambling industry, including a large-scale network of retail stores. In addition to these strengths, the Company’s brands also enjoy a high profile and are well-known by their customers.
In addition, 888 Holdings’ brands are recognised as industry leaders by both their customers and regulators, and the company is well-positioned to benefit from changes in the regulation of the gambling industry in the future.
In short: 888 Holding’s online and retail revenue is highly competitive, with the group’s products attracting a diverse range of customers from around the world. Meanwhile, its branded online gambling sites and mobile apps have strong brand recognition.
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