888 Holdings Surpasses Early 2024 Revenue Expectations

Revenue Growth and Market Dynamics

The first quarter of 2024 saw 888 Holdings generating revenues of £431 million, slightly above the upper end of its forecasted range.

This performance indicates a sustained positive momentum, with a 2% increase from the previous quarter. The group anticipates continued growth, aligning with its mid-term revenue growth targets of 5-9% annually.

Segment Performance

In the UK and Ireland online segment, gaming revenues rebounded noticeably despite a slight dip in revenue due to decreased sports revenues.

This segment is expected to recover in the upcoming quarters due to strong customer engagement and innovative products.

888’s international revenues increased by 6% driven by Italy, Spain, and Denmark.

Strategic Shifts and Corporate Developments

In March 2024, 888 Holdings confidently announced its Value Creation Plan (VCP) alongside a series of strategic financial targets, marking a significant milestone for the company.

These include enhancing the adjusted EBITDA margin and reducing net leverage to below 3.5 times by the end of 2026.

Furthermore, the company plans to rebrand as evoke plc, reflecting a unified corporate identity that aligns with its strategic vision.

Operational Efficiency and Market Exit

The company’s operational model reset is on track, with identified cost savings being redirected to fuel marketing strategies that promise higher returns.

Additionally, 888 has decided to streamline its operations by exiting its US B2C business, a move expected to improve EBITDA significantly from 2025 onwards.

Per Widerström, CEO of 888, commented “I am pleased to report that Q1 2024 revenue was slightly ahead of our guidance, with strong player volumes converting into improved revenue run rates. Having lapped various regulatory and compliance changes during the quarter, and with increased marketing investment supported by an exciting product pipeline, we remain confident in a return to growth from Q2 2024.

I was delighted to outline our multi-year value creation plan alongside our full year results in March, and am pleased to report a strong quarter of progress against these plans. 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.”