888 Announce 2023 Financial Results
888 Holdings, a prominent player in the global betting and gaming industry, disclosed its financial outcomes for the year concluding on December 31, 2023. The announcement revealed financial metrics that point towards the company’s operational and strategic manoeuvres during the period.
In 2023, 888 Holdings reported a significant increase in revenue to £1,710.9 million (US$2,162 million/€1,993 million), up from £1,238.8 million in the previous year. This marks a 38% growth, although when adjusted on a pro forma basis, the revenue saw an 8% decline compared to 2022. Adjusted EBITDA for the year stood at £308.3 million, showcasing a 41% increase from the prior year, albeit showing a marginal decline when compared to the adjusted figure of £310.6 million.
The company encountered a loss after tax of £56.4 million, which is an improvement over the previous year’s loss of £120.6 million. Adjusted profit after tax was noted at £48.1 million, descending from £64.2 million in 2022.
888 Holdings has also laid out a Value Creation Plan (VCP) aimed at steering the company towards long-term success. This strategy, driven by the newly appointed CEO Per Widerström and a refreshed executive team, focuses on resetting the group’s operating model, extracting cost efficiencies, and establishing a strategic framework aimed at operational excellence.
The company has redefined its market strategy, focusing on Core Markets like the UK, Italy, Spain, and Denmark, and optimizing other markets. An ongoing strategic review of its US B2C business is expected to yield significant cost savings and refocus the company’s efforts on more profitable ventures.
A proposed name change to evoke plc is on the table, awaiting shareholder approval, to better reflect the company’s ambitions and market positioning.
For the immediate future, 888 Holdings projects Q1 2024 revenues to range between £420-430 million, aligning with its medium-term growth targets. The outlook for FY24 remains positive, driven by growth in active players and a solid foundation laid by the VCP, positioning 888 Holdings for sustainable growth and profitability.
Per Widerström, CEO of 888, commented: “It is incredibly exciting to announce our Value Creation Plan, our strategy for success, our new financial targets, and our new corporate identity. Today marks the beginning of an exciting new dawn for this business.
“Having joined the company in October 2023 my conviction in the significant opportunity for the Group is stronger than ever. We have acted with pace, decisiveness and urgency to build a clear strategy to deliver success. These actions include significantly strengthening our executive leadership team and developing a new strategic framework and Value Creation Plan.
“I firmly believe that the Group now has all the key ingredients for long-term success: leading positions in growing markets with high and rising barriers to entry; powerful proprietary technology; a top-class management team; and some of the strongest betting and gaming brands in the world.
“We are now clear on what success looks like, we have the team and capabilities to deliver, and I am confident that the execution of our plan will deliver a high return on equity from sustainable profitable growth, enhanced by deleveraging.”
