888 Posts Strong Revenue Growth Despite Profit Decline and Explores Rebranding
The prominent gaming corporation, 888, witnessed a substantial rise in its 2023 earnings, accumulating £1.71 billion ($2.16 billion). This signifies a considerable 38% surge in contrast to the preceding year. The incorporation of William Hill, concluded earlier in 2023, played a pivotal part in this expansion. Nevertheless, it’s important to recognize that this integration also resulted in an 8% decline in the company’s fundamental revenue.
Notwithstanding the revenue upswing, 888 encountered a decrease in profits. Their modified EBITDA, on the other hand, displayed favorable momentum, ascending by 41% to attain £308.3 million. The company’s adjusted post-tax profit suffered a setback, plummeting by 25% to £48.1 million.
Intriguingly, 888 is contemplating a transformation. The enterprise unveiled a value enhancement strategy encompassing a rebranding endeavor. 888’s CEO, Per Widerström, conveyed their ambition, stating that while their customer brands remain robust, they posit a name alteration to “evoke plc” better embodies the company’s progression and the fresh chapter they are poised to commence. This suggested name modification will be presented for stakeholder endorsement at the forthcoming Annual General Meeting in 2024.
The company’s final quarter trading report for 2023 disclosed a 7% year-over-year reduction in revenue, reaching £424 million. However, there’s a positive aspect: this number represents a 5% increase relative to the prior quarter.
In 2023, 888 experienced an 8% decrease in income, with stricter rules and levies in numerous markets accounting for almost all of the reduction.
The firm has been actively addressing these regulatory obstacles, recently emerging from a UK Gambling Commission examination without incident or sanctions.
The US market, however, poses a unique obstacle. 888 is investigating strategic alternatives for its US operations, including a possible sale or partial sale of its business-to-consumer products in the area, citing intense rivalry and significant operating expenses.