888 has reported its financial earnings for the first quarter of 2024. In total, revenue came to £431m ($536.4m), up 2% from last quarter and slightly ahead of the £420-430m guidance outlined in the company’s FY23 results. Year-on-year, however, this total represents a decline of 3%.
UK and Ireland
In the UK and Ireland, total revenue was reported at £164.4m, down 1% year-on-year. This decline can be attributed mostly to betting revenue, which fell 8% year-on-year to a total of £62.5m, while gaming revenue saw growth of 4%, coming to £101.9m. Average monthly users were up 9%, coming to 1.27 million, yet despite this sportsbook stakes declined at the same rate, down 9% to £630.6m.
Retail
In the retail segment, total revenue fell 7% to £130.3m. Gaming and betting revenue faced similar declines, down 7% and 6% respectively. Sportsbook stakes were also down, falling 4% to £393.5m. This decline was pinned to the operator's reduction of in-person shops (down 2% year-on-year).
International
On the international front, total revenue was also down, falling 2% to £136.5m. While gaming revenue was up 2% to £116m, betting revenue fell sharply by 22% to £20.5m, accounting for this overall decline.
Average monthly users remained stagnant, growing by 2,000 users, though unlike the UK and Ireland and retail, this segment saw growth in sportsbook stakes, up 2% to £327.2m.
Changing tides
888 is in the process of reviewing its assets as part of its ‘Value Creation Plan,’ with other changes including a company name change to ‘Evoke’ as part of its new strategy.
This plan to review US assets was first announced in early March, with 888 terminating its exclusive partnership with SI. Following the company’s FY23 report later that month, 888 announced the conclusion of its US assets sales, with Hard Rock Digital acquiring the assets.
Comments
On the results, CEO Per Widerström said: “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... We are moving decisively and at pace to position our company for long-term success and I look forward to providing further updates about our progress in the coming months.”
Widerström, of course, is the man tasked with turning things around at 888. It will be a big job.
