888’s revenue and profit fell in the second quarter as it completed the acquisition of betting company William Hill.
The betting and gaming company suffered a 13 per cent revenue decline to £332.1m from £380.9m in the first quarter of last year. Stricter gambling laws in the UK and the closure of the Netherlands led to the revenue drop.
The company’s profit before tax fell 66 per cent to £14.4m, with adjusted profit before tax down 39 per cent to £33m, as 888 completed its purchase of William Hill and aimed to create a top 3 betting operator in the UK.
Adjusted basic earnings per share dropped to 7.5p a share from 13.2p a share with the decline due to falling EBITDA and reflecting a higher share count following a capital raise to partly finance the William Hill deal.
888’s EBITDA fell 29 per cent to £50m as compliance costs rack up and investment in the US continues. The company is expanding into markets that are regulated and have growth potential like the US and Canada.
“The Group’s financial performance in the period primarily reflects market conditions in the UK,” said CEO Itai Pazner. “However, we believe the proactive actions we have taken to increase player protections and drive higher standards of player safety have put the Group in an even stronger position for the future.”
“In the second half of 2022, our main focus is on integration, delivering on our synergy plans, and driving higher profitability across the business.”