888 Holdings saw profits plummet in the final quarter of 2023 and in the fiscal year.
U.K.-based 888 announced fourth-quarter revenue of $541.6 million, a 7% year-over-year drop despite a 5% increase from the third quarter. The company said a cost-savings program led to an expected change.
Total revenue for the fiscal year took an 8% fall from $2.35 billion in 2022 to $2.2 billion in 2023. 888 executives said more than $100 million of revenue was lost because of a “proactive mix shift away from dot-com markets.”
Varying regulations and compliance changes in some international markets caused a 16% year-over-year drop in the final quarter and fiscal year. Online operations in the U.K. fell 8% year-over-year because of safer gambling measures and marketing changes, while retail revenue rose 3% for the year and fell just 1% in the final quarter.
Changes at the top
New CEO Per Widerstrom took over 888 in October, leading to several other executive changes and a new focus. Widerstrom is confident that he has the people to refine the strategic framework and create a plan that will “deliver deleveraging and strong shareholder returns in the coming years.”
"We are now taking rapid actions to position the group for future success, reducing our overhead costs and freeing up funds to invest in growth based upon our new strategy and value creation plan.”
Looking ahead
888 touted its 5% increase in active customer base, which gives the company’s executives the belief that 2024 will be better. However, Widerstrom acknowledged that the financial numbers must go up.
"The financial performance of the group must improve, and the actions we are taking will build a leaner, more agile, and more effective organization structure, as well as establishing a more effective management of the customer and product life cycle. These plans support material value creation and significantly higher profits over the coming years.”
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