The gaming behemoth, 888, experienced a substantial income surge in 2023, amassing £1.71 billion. This remarkable 38% leap is primarily credited to their purchase of William Hill earlier that year. Nevertheless, when examining inherent expansion, their income actually contracted by 8%. In spite of this, the corporation is contemplating a rebranding effort, potentially including a name alteration, to mirror their shifting image.
Chief Executive Per Widerström conveyed that while their customer-facing brands remain robust, they aim to recognize the “fresh path” they are embarking on. They are suggesting a rebranding of the group as “evoke plc,” a choice that will be presented for a shareholder ballot at the forthcoming 2024 Annual General Meeting.
While their adjusted EBITDA witnessed a positive rise of 41%, reaching £308.3 million, their profits after tax experienced a downturn, diminishing by 25% to £48.1 million. Despite this setback, their net deficit for the year contracted significantly to £5.64 million, a notable betterment from the £120.6 million deficit declared in 2022.
Their earnings per share (EPS) also underwent a reduction, reflecting the fall in net profit. This announcement follows their Q4 2023 trading update, which disclosed a 7% year-over-year decline in revenue, stabilizing at £424 million. However, there’s a positive aspect: this number signifies a 5% upswing compared to the preceding quarter.
In the fiscal year 2023, 888 experienced a revenue decrease of 8%. This downturn was almost entirely (approximately 95%) attributed to regions where authorities implemented stricter regulations and taxation.
The firm has been actively addressing these regulatory obstacles. Following a recent assessment by the UK Gambling Commission, 888 emerged favorably, retaining its operational license without any sanctions.
Shifting focus to the US market, 888 is evaluating its strategic possibilities, which encompass a potential full or partial divestment of its business-to-consumer operations in the region. The company pointed to the intensely competitive environment and elevated operational expenses as contributing factors.
