In the latest Q3 financials 888 Holdings reports 10% revenue dip despite a rise in players using its land-based and online gambling services. (Images courtesy of 888 Casino)
888 Holdings reported a 10% drop in its revenue for Q3 2023 compared to the same period last year. Despite the dip in revenue, the company observed a remarkable 11% increase in average monthly active users. CEO Per Widerström expressed optimism about the company’s potential for future growth despite current challenges.
The company recorded a total revenue of £ 405.0 million, down from £449.4 million in Q3 2022. This decline was evenly distributed across its gaming and betting revenue segments, falling by 10%. Gaming revenue came in at £262.4 million, and betting revenue was £142.6 million. On a positive note, the firm saw an 11% year-over-year growth in its average monthly active users, increasing from 1,517,000 to 1,679,000.
For those of you not familiar with 888 Holdings, or only familair with its 888Casino, 888Sports, and 888Poker brands, the company also owns several other gambling brands. These include William Hill retail betting shops in the UK and the William online casino and sports book. On top of this, 888 is also the owner of Mr Green online casino and 888Ladies. The company is also making waves in bringing popular online slots into the land-based arena after introducing the famous Book of Dead slot series to William stores as per the Casino Plus Bonus report – Book of Dead Land-Based Slots to Launch in William Hill Stores.
Furthermore, 888Casino, 888Poker, and 888Sports operate in New Jersey and Delaware, while the 888Sports and 888Poker brands are available in Nevada; an iGaming friendly state but does not have an online casino licensing framework. Other areas these brands operate in include the Malta Gambling Authority (MGA) global market, Africa under 888Africa, and in the UK market. As a result, there are quote a few pieces to the jigsaw.
Words from the CEO: Per Widerström, the recently appointed CEO of 888, emphasised that despite the challenges faced in terms of regulation, the company is poised for growth. He acknowledged that there are areas that need improvement but is keen on driving positive momentum towards the year-end and beyond.
888 Holdings Q3 Financial Results
888 Holdings H1 2023 Financials: For a look back at the previous 888 Holdings financial report, I wrote a report back on 16 August 2023 – William Hill Props Up 888 Holdings Half Year Financials.
| Metrics | Q3 2023 (£M) | Q3 2022 (£M) | Change (%) |
|---|---|---|---|
| Total Revenue | £ 405.0 | £ 449.4 | -10% |
| Gaming Revenue | £ 262.4 | £ 290.4 | -10% |
| Betting Revenue | £ 142.6 | £ 159.0 | -10% |
| Average Monthly Active Users | 1,679,000 | 1,517,000 | +11% |
What the Results Mean for 888 Holdings
Drops in revenue for companies operating in the UK, where 888 Holding’s brands gained most of its revenue in the past, are common in the current market climate. The recent White Paper changes severely affect how online and land-based gambling entertainment companies operate in the country. Plus, investments overseas in places like Ontario are still new, with more brand-building ahead.
A 1% mandatory levy on all revenue in the UK certainly won’t help, and for the company’s William Hill land-based betting shops, the compulsory levy is 0.4%. On top of this, due to the huge £ 18 million fine by the UKGC, the company has likely had to outlay a huge investment on ensuring its AML and responsible gambling practices align with UK laws.
There is also the threat of online slot machines having a max bet limit of £ 2 to £ 15 per spin, which could further dent revenue. When you consider online slots are the most played games in casinos, the UK income side of the business likely has more downside to report. Adding to all of this, 888 Holdings had to endure lockdown periods closing its high William Hill high street betting stores, which in turn didn’t help with the current debt used to reverse takeover the William Hill brand prior to COVID-19.
I foresee brighter times ahead, but not in the near future. The UK White Paper needs to finalise its rules under the UK Gambling Act and overseas investments to diversify need to build up and accrue market share before we begin to see more consistent figures.
Opinion: A Tale of Two Metrics
- The Good: The 11% uptick in average monthly active users suggests a robust user engagement and hints at potential future revenue streams.
- The Bad: A 10% drop in both gaming and betting revenue isn’t trivial and suggests that the company may need to reevaluate its strategies.
More information on 888Holdings Brand: You can find out more about William Hill, 888Casino, and Mr Green online casinos via the best online casino gambling guide. From here you can also head to the UK, Canada, South Africa, India, Ireland, and New Zealand pages where all these brands operate.
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