888’s UK user dip cuts into revenue as player restrictions sink in
Gambling giant 888 posted humble growth this morning, with group revenue up one per cent to $224m (£172m) for the first quarter.
888 struggled to keep pace with a record 2021, meaning it reported a year on year decline of 18 per cent, with average monthly actives dropping eight per cent due to the temporary exit from Dutch market and the heightened focus on safer gambling.
Whilst regulated markets delivered a strong performance, particularly the US, Romania and Portugal, all of which grew, the UK market failed to gain momentum due to increased player restrictions.
Nonetheless, brokers at Peel Hunt were left unfazed by this drop and held its ‘Buy’ rating for the stock.
Instead, analysts cited the prospect of a winter Football World Cup as boosting the company’s revenue at the back-end of the year.
Notably, the firm have also made strategic investments, including 888AFRICA, which gives the region a vote of confidence moving forward.
888 chief Itai Pazner said it had been “another busy period of progress”, having also launched Stateside in Michigan and Ontario, with Virginia planned to follow in May.
There is also the ongoing progress for its acquisition of William Hill, with 888 slicing the value of the deal due to the changing “macro-economic and regulatory environment”. The new agreement means 888 will now pay £250m less for an initial cash consideration, down from £835m.
Peel Hunt backed this move, and said the gambling firm would be :of a more relevant size to many investors” .