888 Publishes Q1 Report, Targets Growth in Q2

Global gaming powerhouse 888 has published its trading update for the first quarter of the year (the three-month period ended March 31), reporting a slight increase in overall revenue.

The company’s report highlighted group revenue of £431 million ($535.8 million), a figure that exceeds the £420-430 million guidance outlined in the company’s previous report. The revenue figure also represents an increase of 2% quarter-on-quarter, reflecting a positive trend. The company expects revenues to return to YOY growth from Q2 2024 onwards and projects an FY revenue increase of 5-9%.

In terms of the UK & Ireland region, 888 reported strong customer engagement across the online sector and a 9% increase in average monthly active users. Revenue, however, declined by a single percent. Despite that, the company expects revenues to return to YOY growth from Q2 onward.

The company’s international online segment meanwhile, recorded positive sequential growth. Q1 revenues were 6% up from Q4 2024. The segment already returned to YOY growth, according to the company, thanks to strong performance in Italy, Spain and Denmark.

As for the retail sector, 888 posted a 7% decline in revenues, reflecting the company’s shop optimization.

CEO Widerström Is Optimistic about the Company’s Position

Q1 was a period of change for 888, in which the company unveiled its new strategy, Value Creation Plan and clear medium-term financial targets. The company hopes to grow its revenue by 5-9% per year and improve adjusted EBITDA margins by approximately 100bps per year. 888 also hopes to deleverage net leverage to 3.5x or below by the end of 2026.

Additionally, 888 unveiled a new brand identity – evoke plc – in line with its desire to reflect its new “One Company” approach. The rebrand is set to be launched in May 2024.

The company also completed the strategic review of its US B2C business and is planning to sell certain assets, subject to regulatory approvals. The divestment is expected to improve the company’s EBITDA.

Per Widerström, 888’s chief executive officer, commented on the matter, expressing his excitement about the report. He said that he was delighted to outline the company’s VCP in March and is looking forward to delivering improvements.

We are moving decisively and at pace to position our company for long-term success, and I look forward to providing further updates about our progress in the coming months.

Per Widerström, CEO, 888

In other news, 888 recently unveiled its plan to make up for its lackluster 2023 results by capitalizing on new opportunities in Canada.