# 888 Holdings overall revenue for Q3 2023 expected to be down around 10%

- Link: https://www.directorstalkinterviews.com/888-holdings-overall-revenue-for-q3-2023-expected-to-be-down-around-10/4121128491
- Published: 2023-09-28T08:53:46+01:00
- Author: Amilia Stone

**888 Holdings plc** (LON:888), one of the world’s leading betting and gaming companies
with internationally renowned brands including William Hill, 888 and Mr Green, has
announced an update on current trading and FY23 guidance.

**Current trading commentary**

Performance across the Group has been mixed, with overall revenue for Q3 2023 expected
to be down around 10% to approximately £400m. The Group has made significant and
ongoing improvements to the [sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news)
and quality of the mix of the business, and while this is weighing on short-term
performance, the Group continues to drive strong double digit active customer growth.
The main drivers of the year-over-year revenue decline include:

·    Ongoing significant impact from compliance changes implemented in dotcom markets,
with slower recovery in customer activity and revenues than initially anticipated

·    Customer friendly sports results impacting win margin across both UK and International
markets in September

·    The ongoing impact of safer gambling changes within the UK, with trends consistent
with prior commentary, with strong growth in active customers supporting a return
to revenue growth in 2024

·    A short-term impact from the change in marketing approach to focus on higher
return marketing and in line with the Group’s clear market focus strategy and refined
brand-led marketing approach

Retail continues to perform strongly, with broadly stable revenues relative to last
year despite customer friendly sports results, and no change to the expectation 
of mid-single digit revenue growth in the full year, with strong customer engagement
and the positive impact of the continued rollout of additional proprietary SSBTs
and expansion of content on our retail gaming platform.

As of Friday 22 September, cash (net of customer balances) was approximately £162
million, with undrawn committed facilities of £150 million, giving total liquidity
of more than £300 million.

**Outlook and FY23 guidance**

·    Synergy delivery is on track and significant cost savings are being delivered
that have helped to mitigate the year-to-date revenue performance versus initial
expectations. Further synergy opportunities have been identified but additional 
savings will be reinvested in growth initiatives, with the Group having significant
growth opportunities available to it underpinned by its new operating model and 
brand-led marketing strategy

·    The Group now expects revenues in Q4 2023 to be sequentially higher than Q3
2023 but lower year over year by a mid-single digit, before returning to growth 
in 2024

·    The priority of driving sustainable growth in 2024 and beyond means that FY23
Adjusted EBITDA margin is now expected to be approximately 18-19%, with the emphasis
on investing in and focusing the business to deliver its previously stated 2025 
targets, which remain unchanged

> **Lord Mendelsohn, Executive Chair of 888 Holdings, commented:**
> _“This has been an important quarter for the business with the announcements of
> Per Widerström as our new CEO and Sean Wilkins as our new CFO, who I am very confident
> will lead the business through its next phases of growth and I look forward to
> Per starting as CEO in mid-October._
> _We are making significant strides to improve the quality and long-term sustainability
> of our revenues, but performance in Q3 has been below our expectations, and this
> means we now expect to end the year with EBITDA below our prior expectation._
> _The hard work the team has undertaken so far this year has set very strong foundations
> for the future of the business and our synergy delivery is well on track. We are
> strongly focused on investing to deliver good levels of expected revenue growth
> in 2024 as we progress towards our clear target of more than £2 billion of revenue
> in 2025 and I look forward to the coming years with confidence.”_

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