(Alliance News) - 888 Holdings PLC on Friday said fourth-quarter revenue declined amid regulatory measures hitting its UK online segment, despite the football World Cup contributing to a "successful fourth quarter".
Meanwhile, Chief Financial Officer Yariv Dafna will step down on March 31, after the Gibraltar-based online betting and gaming company publishes its 2022 results.
Revenue in the fourth quarter to December 31 fell by 2.6% to GBP458 million from GBP470 million. For the whole year, revenue was 3.0% lower at GBP1.85 billion from GBP1.91 billion. 888 said the revenue figures are provided pro forma, as if it had owned William Hill for all of both years.
"Trading during the fourth quarter of 2022 was in-line with board expectations," 888 said.
"Online revenues [were] stable compared to the third quarter of 2022, and 5% lower than the prior year, with a continuation of the trends seen in the first nine months of the year, with strong performances across a number of regulated countries being offset by the impact of proactive enhanced player safety measures within the UK Online segment."
888 said the World Cup contributed to a "successful fourth quarter". Online player days at William Hill rose 22% versus the UEFA European Championships in summer 2021. 888 sealed the acquisition of William Hill's non-US business in July of last year for an enterprise value of GBP1.95 billion.
Adjusted earnings before interest, tax, depreciation and amortisation for 2022 will be in line with 888's guidance range of GBP305 million to GBP315 million, it said. Adjusted Ebitda was reported in dollars in 2021, coming in at USD165.0 million, though this didn't include William Hill.
The outlook for 2023 remained unchanged, 888 said, anticipating revenue to be lower by a low single digit percentage, and an adjusted earnings before interest, tax, depreciation and amortisation margin of at least 20%.
888 shares were 4.7% lower at 89.14 pence each in London on Friday morning.
By Tom Budszus, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
