One of the world’s leading betting and gaming companies reported a 2% increase in revenue relative to its Q4 2023 performance, and the €431 million is slightly ahead of the €420-430 million guidance range that the company expected for the quarter.
888’s CEO Per Widerström commented:
“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. Having lapped various regulatory and compliance changes during the quarter, and with increased marketing investment supported by an exciting product pipeline, we remain confident in a return to growth from Q2 2024.”
The company touts internationally renowned brands such as William Hill, 888, and Mr. Green. Its average monthly active users grew 9% year-over-year for its online segment. Also for this segment, betting revenue dipped 8% compared to Q1 2023, but gaming revenue spiked 4% YoY.
888 reported slight percentage declines in its retail and international segments though. The retail segment was down 7% year-over-year while international dropped just 2%. Group results faded 3% because of these declines.
The core markets of Italy, Spain, and Denmark propelled the international segment to a 6% increase in revenue compared to Q4 2023 though, and also achieved 4% year-over-year growth in February and March.
Strategic Review
The company announced its new strategy on March 26 to grow revenue by 5-9% per year. Included in this was a new corporate identity as 888 Holdings will be rebranded to evoke, a name that is supposed to better reflect the new ‘One Company’ approach the company is taking.
evoke will formally be launched in May subject to shareholder approval.
The company also concluded a strategic review of its business-to-consumer business in the United States on March 28, which resulted in a sale of select assets to Hard Rock Digital under what it is calling a “controlled exit of its remaining US B2C operations.”
Widerström added:
“I was delighted to outline our multi-year value creation plan alongside our full-year results in March, and am pleased to report a strong quarter of progress against these plans.”
888 decided to terminate its sports betting agreement with SI in early March, which massively shook up its US B2C strategy but it's a move that will also save the company $6 million to $7 million per year in 2024 and 2025.
With its eventual exit from the US, the company will shift its focus to four core markets in Europe: Italy, Denmark, Spain, and the UK.
