William Hill owner 888 reveals fall in yearly sales as it targets £30m savings
The firm revealed an 8% decline in total sales over 2023, to £1.71 billion from £1.85 million generated the previous year.
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Your support makes all the difference.William Hill owner 888 has revealed a drop in yearly sales amid a clampdown on safe gambling in the UK, and said its profit is likely to be affected by increased spending on artificial intelligence (AI) and automation.
The gambling giant also said it was targeting some £30 million in savings, which includes closing its office in Bulgaria and making redundancies overseas.
The firm revealed an 8% decline in total sales over 2023, to £1.71 billion from £1.85 million generated the previous year.
The fall was driven by the group moving away from “dotcom markets”, which refers to places where 888 runs its website but does not do any marketing, which it said led to an £80 million hit to revenues during the year.
Sales were also impacted by the introduction of safer gambling measures in the UK, designed to protect more vulnerable players and prevent problem gambling, and changing how it advertises to customers.
The financial performance of the group must improve, and the actions we are taking will build a leaner, more agile and more effective organisation structure
888 said it saw an 18% reduction in average revenue per customer in the UK and Ireland, meaning people spending less money each time they bet, more than offsetting an 11% increase in the average number of active customers it had per month.
The group said it initiated a global cost savings programme of about £30 million in December.
Chief executive Per Widerstrom said the company was taking “rapid actions to position the group for future success”, including “reducing our overhead costs and freeing up funds to invest in growth”.
A spokesperson for the group confirmed that it had made the “difficult decision” to close one of its 11 global offices, in Sofia, Bulgaria’s capital city. It also said it would be making some redundancies in Israel as part of organisational changes.
But the company added it was planning to invest more in several areas such as intelligent automation and AI-powered data and insights.
It is also shifting its focus toward “recreational customers” alongside strengthening its own gambling protections.
888 said the plans will improve profitability in the long term, but the additional spending means it now expects adjusted earnings for 2024 to be at the “low end” of its guidance, currently between £340 million and £397 million.
Mr Widerstrom, who became the group’s chief executive in October, added: “I have joined the business at both an exciting and important time.
“There are clear opportunities to unlock our significant potential, but as a business we know that going forward we must be more proactive in adapting to changes in regulation and technology.
“The financial performance of the group must improve, and the actions we are taking will build a leaner, more agile and more effective organisation structure, as well as establishing a more effective management of the customer and product life cycle.”
Shares in 888 were down by nearly 9% on Wednesday morning.