By Najat Kantouar
Online betting-and-gaming company, 888 Holdings, announced a decrease in revenue for the third quarter as it invested in the business. However, the company remains optimistic about its fourth quarter and full-year outlook.
Although there is ongoing conflict in Israel, 888 Holdings stated that its operations in the region have not been significantly impacted.
During the third quarter, revenue dropped by 10% to £405.0 million ($493.5 million), compared to £449.4 million in the same period last year.
The decline in revenue was driven by a 10% decrease in online revenue from the U.K. and Ireland. This was attributed to safer gambling changes, a refined marketing approach, and lower betting net win margin resulting from customer-friendly sports outcomes in September.
Despite a 19% revenue decrease in the digital business due to compliance changes in dotcom markets (particularly in the Middle East), customer engagement remains strong with a 17% increase in average monthly active users. However, international average monthly actives fell by 2%.
Actives refer to players who have wagered real money and made at least one deposit during the period.
Looking ahead, 888 Holdings reaffirmed its forecast for fourth-quarter revenue to witness a mid-single-digit decline. The company also reiterated its adjusted Ebitda margin guidance of 18%-19% for 2023.
Chief Executive Officer Per Widerstrom expressed confidence in the company’s growth potential but acknowledged the need for improvement in certain areas to drive value creation.