Online poker and William Hill owner 888 posts 7% drop in revenue

888 said its UK revenue had been affected by efforts to improve player safety.

888, the online poker firm and William Hill owner, has said it expects its annual revenue decline to be at the top end of its forecast, sending its shares down 4%.

The company posted a 7% drop in first-half revenue to £881.6bn (€1,026bn), missing a forecast from analysts at JPM of about £899m.

However, 888 kept its profit outlook unchanged and said it would realise cost synergies from its 2022 acquisition of William Hill’s non-US assets a year earlier than planned.

“We now expect to realise the full £150m of synergies in 2024,” said executive chairman Jonathan Mendelsohn.

The company, which owns 888casino, 888poker, and 888sport among other brands, said its UK revenue had been affected by efforts to improve player safety, while it had also seen a slower-than-expected recovery in its business in the Middle East.

The company had to suspend its VIP operations in the Middle East in January during an internal investigation into compliance with market regulations. It forecast a revenue hit of £25m to £30m from the suspension in April.

888 last month appointed a new chief executive after shrugging off its second-largest shareholder FS Gaming’s call to appoint its candidates to top roles that led the UK’s Gambling Commission to launch a review of the betting firm’s licences in the UK.

Reuters