888 Q3 revenues slump amid regulatory changes

(Sharecast News) - William Hill and Mr Green owner 888 posted a slump in third-quarter revenues on Wednesday as it took a hit from new gambling regulations. In an update for the three months to 30 September, the company said revenue fell 10% year-on-year to £405m.

UK & Ireland online saw a revenue drop of 10%, which 888 said was driven by the ongoing impact of safer gambling changes and a "refined" marketing approach, along with a lower-than-expected betting net win margin from customer-friendly sports results in September, particularly UK football.

Meanwhile, international revenue declined 19%, with an ongoing significant impact from compliance changes in dotcom markets, particularly in the Middle East, and a slower recovery in revenue and customer activity than initially expected.

Chief executive Per Widerström said: "I am happy to note that despite the regulatory challenges the group has faced this year, the hard work by the team is already showing signs of results meaning that we head towards the end of the year with positive momentum, and well placed to grow in the coming years.

"This is a business with a very strong foundation for profitable growth. But there are clearly also several areas for improvement which we will focus on to unlock our full potential and drive value creation. I am looking forward to working closely with our fantastic people in the group, the talented executive team and the board to ensure we are in the best possible position to deliver our plans and maximise value creation."