888’s audited 2022 revenues translated to a 74 per cent jump year-on-year, but there was a five per cent dip in the Q1 trading update.
After announcing pro-forma revenues of £1.85bn in January - a three per cent year-on-year dip - FY22 audited revenue for the group was £1.2bn, up from £712.3m in 2021. It said this was driven by the completion of the acquisition of William Hill in July last year.
Adjusted EBITDA for the year, meanwhile, rose 82 per cent to £217.9m. 888 said it expects the figure to be significantly higher year-on-year, with an adjusted EBITDA margin of at least 20 per cent.
However, it added that full 2023 revenue is likely to be lower than 2022’s efforts by a low to mid-single digit percentage.
888 said it expects no further impact from its recent Middle East troubles, where it led an internal investigation into shortfalls in best practices in relation to VIP customers. The group said it expects to recover between 40 and 50 per cent of revenue from the cohort, resulting in up to £30m in revenue headwind for 2023.
Q1 revenues for 888 dipped five per cent to £446m, with a nine per cent slump online. An 11 per cent decrease in international revenue was put down to a refined focus on its core markets, as well as the Middle East investigation. However, retail showed promise for 888 with an eight per cent jump in revenues.
Lord Mendelsohn, executive chair of 888, said the results reflect the “extensive actions being taken to drive higher standards of player protection.”
He labelled issues in the Middle East “very disappointing” but said they have “underlined the importance” of the group’s risk management framework.
“In 2023 we remain on track to deliver higher profitability as we deliver against our clear strategic priorities," Lord Mendelsohn concluded. "Our clear priorities of integration, market focus, and deleveraging give us confidence in our 2025 targets, as we build a stronger and more sustainable business for the future."
888 confirmed it has made “good progress” in the search for a new CEO, with CFO and executive director Yariv Dafna remaining in his post until the end of 2023 to provide stability.
