888 Reports Mixed Financial Results for 2022

888's mixed financial results
888's mixed financial results revealed a significant uptick in revenue and adjusted EBITDA for 2022, despite a net loss after tax of over £120m.

888 Holdings, a leading online gaming company, has reported a significant uptick in revenue and adjusted EBITDA for 2022. However, the group suffered a net loss after tax of more than £120m, primarily due to “increased financing costs from the debt on acquisition of William Hill” in July 2022.

Revenue Improvement and Pro Forma Decline

The company announced a 74% YoY revenue improvement to £1.2bn in 2022, largely attributed to the consolidation of William Hill revenues. However, on a pro forma basis, revenue fell by 3% YoY to £1.85bn, which 888 says “primarily reflects the additional player safety checks implemented in the UK&I online business“.

International Business Decline and Vertical Performance

International business declined by 9% YoY to £613.7m, following regulatory changes and the closure of the Netherlands business in Q3 2021. Retail revenues improved by 54% YoY to £519m, while online gaming revenue and online sports betting revenue dropped by 11% and 24%, respectively.

Adjusted EBITDA Increase and Net Loss

888 reported an adjusted EBITDA for 2022 of £217.9m, an 82% increase YoY, with a margin of 17.6%. Pro forma adjusted EBITDA rose by 15.1% to £310.6m, with a margin of 16.8%. However, the company reported a net loss in profit before tax for 2022 of £120.6m.

Executive Remarks and Future Outlook

Lord Mendelsohn, Executive Chair of 888, stated, “The combination with William Hill transformed the group and brought together two exceptional and complementary businesses to create one of the world’s leading betting and gaming businesses.” The company is focused on integration, market focus, and deleveraging, aiming to achieve £2bn in revenue by 2025 and an adjusted EBITDA margin of 23%.

Key Departures and Regulatory Compliance

888 announced the departure of CEO Itai Pazner and the upcoming departure of CFO Yariv Dafna. The group faced safer gambling policy failures concerning Middle East VIP customers and was fined £19m by the UK Gambling Commission for historic player safety failings. Looking ahead, 888 expects 2023 revenues to be lower by a low to mid single-digit percentage compared to 2022, but adjusted EBITDA to be higher as the group focuses on sustainable revenue streams.

Share the Post:
Elly Smith

Elly Smith

Elly Smith is a journalist working full time for iGamingTrends.com. She is passionate about covering trends and new tech the iGaming industry.