888 Holdings, a global leader in iGaming and online betting has announced an updated trading report. The group reported revenue of $224 million for the first three months of the year that ended March 31 2022, signaling an 18% decrease compared to last quarter’s numbers.
Trading Update for the First Quarter
The group’s 18% YoY total revenue drop from last year’s $273 million was mirrored in its Business-to-Consumer earnings which went down from $263 million in 2021 to $215 million in 2022. The Business-to-Consumer revenue for Q1 reached $215 million, dropping 18% from $262 million, while the Business-to-Business revenue dropped 6% reaching $9 million. The Business-to-Consumer Gaming YoY revenue also went down 14% to $191 million to $221 million.
Betting operations suffered a more dramatic decline of 42% compared to Q12021, reaching the $24 million mark from $42 million. The drop was explained by a number of factors, including the group’s 28% stake decrease, customer winnings, heavy promotion, as well as the shutdown of its business in the Netherlands in the second half of 2021 for a number of legislative issues.
At the same time, the group recorded a 19% increase in its betting revenue compared to Q42021, a time of “unusually low win margins” as presented by chief executive officer Itai Pazner. William Hill’s acquisition also contributed to a rise in gross proceeds.
888 Holdings Has a Good Start of the Year
Pazner also referred to the first three months of the year as “another busy period of progress” with its 888 Ontario license and World Series of Poker Michigan launches, as well as a pending SI Sportsbook product launch programmed for Virginia this May.
Following a revision of the William Hill deal terms and the placement of equity that would fund it, the group is eager to keep executing its plan to build a worldwide presence in the iGaming and online betting market. The group also stated that a few of its important regulated markets such as the US, Portugal, or Romania all managed to deliver a strong performance. Italy also reported YoY revenue growth.
The Group Is Waiting to Return to YoY Revenue Growth in H2
888 is eager to go back to its previous YoY growth during H2, in the context of upcoming launches in other American states, along with a much-anticipated relaunch on the Dutch market. The launch of the fresh Made to Play master brand campaign in the United Kingdom that will bring all 888 brands together under the same rooftop is also expected to generate excellent results. 888 Holdings appointed Howard Mittman as the new president of its American branch. 888 also invested in 888AFRICA as a means of further bolstering its position in the market.