Bookmaker 888 has attributed a 7 percent decline in revenue in its third quarter to new online safety laws in the United Kingdom.
Total sales decreased to £449million, which the group also attributed to the closure of its operations in the Netherlands, while online income from its William Hill business in the United Kingdom decreased by 14% to £125million.
Retail revenue from William Hill, which 888 acquired in July, was the only business sector that did not fall in the three months to September 30, despite having flat performance compared to the same period last year.
William Hill’s international online revenue decreased by 12% to £52 million, but 888’s core business revenue decreased by 5% to £148 million.
In early trade, 888 shares plummeted 4% to 86.55p, extending year-to-date losses to 71.4%.
In August, 888 attributed a steep reduction in first-half profits to the UK government’s increased safety requirements, which resulted in a decline in online gambling by Britons.
Following the implementation of “more restrictive measures in Q3 and Q4 of the prior year,” 888 said that the average spend per player had decreased by 14 percent year over year.
Itai Pazner, the CEO of 888, stated on Tuesday that the company’s UK online income has endured “continuing pressure” due to the impact of strengthened player safety measures.
He told investors that 888 is “shifting the composition of our business to a lower spending, more recreational player base, which gives us confidence in the UK industry’s long-term prospects.
In addition, retail sales took £4 million in damage from three days of temporary closures, as the national mourning period following the death of the Queen led to the cancellation and postponement of major sporting events.
888 anticipates fourth-quarter revenues to be similar’ to the same period last year, underscoring its cost-cutting measures.
Pazner stated, “Having concluded our transformational merger with William Hill, I am glad to announce that our teams made rapid progress during the third quarter in integrating these two market-leading and extremely complementary businesses.”
This has allowed us to advance toward our new goal operating model while producing several “fast win” synergies that will improve our adjusted EBITDA margin for the second half of this year.
“As we move to the future, we remain principally focused on successful integration, execution, and deleveraging to realise the enormous potential of our bigger firm.
We are establishing a stronger group that will harness our leading technologies and portfolio of world-class brands to become a leading global betting and gaming company, with plans to increase market share and profitability in some of the world’s most attractive regions.
