888 Holdings Posts Strong Q1 Earnings Growth and Reveals New Expansion Strategy
In a promising start to 2024, 888 Holdings has announced that its Q1 earnings have surpassed expectations, reporting a revenue of £431 million compared to the expected range of £420-430 million.
The company’s quarterly performance highlights include:
- UK & Ireland Online Division: Despite a slight revenue dip of 1% due to decreased sports revenues, the gaming revenue in this division increased by 4%. Improved customer engagement and upcoming product launches are anticipated to drive further growth.
- International Operations: The international segment experienced a 6% revenue increase compared to the last quarter, with a 4% year-on-year growth for February and March. Strong performances in key markets like Italy, Spain, and Denmark contributed to this growth.
- Retail Sector: The retail division saw a 7% revenue decline, impacted by a strategic reduction in shop numbers and tough year-on-year comparisons.
In strategic developments, 888 introduced its Value Creation Plan (VCP) on March 26, 2024, outlining ambitious financial goals and strategies for revenue growth and improved EBITDA margins. As part of this plan, the company is set to undergo a significant rebranding to ‘evoke plc’ pending shareholder approval.
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Additionally, 888 announced a reset of its operating model to achieve £30 million in operating cost savings, which will be reinvested into marketing initiatives to enhance profitability in alignment with the VCP. 888 Holdings Q1
In regards to the US market, 888 has decided to divest selected assets of its US B2C business, with the remaining operations expected to close within 2024. This move is projected to increase EBITDA by £25 million annually from 2025.
Per Widerström, CEO of 888, expressed his satisfaction with the quarter’s results, stating, “I am pleased to report that Q1 2024 revenue was slightly ahead of our guidance, with strong player volumes converting into improved revenue run rates. With increased marketing investment and an exciting product pipeline, we remain confident in a return to growth from Q2 2024.”
