London, UK – 888 Holdings, the online betting-and-gaming company, announced that it anticipates adjusted earnings for 2024 to be on the lower side of market forecasts. The company reported a decrease in fourth-quarter revenue, primarily due to the implementation of additional safety measures in gambling.
For the three-month period ending on December 31, revenue dropped to £424 million ($535.8 million) from £457 million compared to the same period of the previous year. The decline was driven by an 8% decrease in U.K. and Ireland online revenue, attributed to ongoing safer gambling initiatives and a more refined marketing strategy, resulting in reduced average revenue per customer.
International revenue saw a 16% decline, mainly due to compliance changes in dotcom markets.
888 Holdings reiterated its 2023 guidance, aiming for an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 18%, aligning with the previously provided range of 18%-19%.
However, due to additional investments, the company expects adjusted EBITDA for 2024 to be towards the lower end of the consensus range of £340 million to £397 million.
Chief Executive Officer Per Widerstrom expressed satisfaction with the progress made in overcoming regulatory and compliance challenges and emphasized that the business has strengthened its foundation for sustained and profitable growth.
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