888, a prominent player in the online gaming and betting industry, recently disclosed its financial results for the first quarter of 2024.
Financial Overview
In Q1 2024, 888 reported total revenue of £431 million ($536.4 million), representing a modest 2% increase from the previous quarter but reflecting a 3% decline year-on-year. Despite this annual decline, the revenue exceeded the company’s own guidance of £420-430 million as outlined in its FY23 results.
UK and Ireland
Revenue from the UK and Ireland totaled £164.4 million, showing a slight decrease of 1% compared to the previous year. The decline in betting revenue by 8% to £62.5 million was offset by a 4% growth in gaming revenue to £101.9 million. The increase in average monthly users by 9% to 1.27 million did not translate into higher sportsbook stakes, which dropped by 9% to £630.6 million.
Retail
The retail segment experienced a 7% decrease in revenue, amounting to £130.3 million. Both gaming and betting revenues declined by 7% and 6%, respectively. The reduction in in-person shops by 2% year-on-year contributed to the decrease in sportsbook stakes, which fell by 4% to £393.5 million.
International
Revenue from international operations also declined by 2%, reaching £136.5 million. Gaming revenue increased by 2% to £116 million; however, betting revenue experienced a substantial drop of 22% to £20.5 million, impacting overall revenue. Despite stagnant growth in average monthly users, sportsbook stakes in this segment rose by 2% to £327.2 million.
Strategic Shifts
888’s strategic realignment, including a company name change to ‘Evoke’ and a review of its US assets under the ‘Value Creation Plan,’ is significant. The termination of its exclusive partnership with SI and subsequent sale of US assets to Hard Rock Digital highlight a decisive shift in the company’s focus and market positioning.
CEO’s Perspective
CEO Per Widerström expressed satisfaction with Q1 2024 results, emphasizing strong player volumes translating into improved revenue run rates. His proactive approach in repositioning 888 for long-term success underscores the company’s commitment to adapting to evolving market dynamics.
888’s Q1 2024 financial report provides valuable insights into its operational performance and strategic initiatives. With revenue slightly surpassing expectations, despite year-on-year declines, the company’s ongoing transformation efforts, underpinned by the ‘Value Creation Plan,’ are pivotal. As 888 evolves into ‘Evoke’ and refines its market strategies, the path toward sustained growth and profitability remains dynamic under Per Widerström’s leadership.