888 Holdings shares fell 14.3% to 137.1p in early afternoon trading on Friday, following a 13% revenue slide to £332.1 million in HY1 2022 against £380.9 million the last year.
888 Holdings attributed its decrease in revenue to a 25% decline in the UK due to stricter gambling policies to protect customers, and the Netherlands closure. Excluding the UK and Netherlands, revenue grew 2% across the period.
The company reported a 29% adjusted EBITDA drop to £50 million compared to £70.3 million, as a result of continued US investment to support SI Sportsbook launches and additional compliance expenses.
888 Holdings mentioned a 66% pre-tax profit fall to £14.4 million from £41.9 million.
Meanwhile, the group confirmed an EPS tumble of 71% to 2.9p against 9.9p.
The firm said its outlook included revenue in HY2 expected to come in line with HY1, alongside
“The Group’s financial performance in the period primarily reflects market conditions in the UK. However, we believe the proactive actions we have taken to increase player protections and drive higher standards of player safety have put the Group in an even stronger position for the future,” said 888 Holdings CEO Itai Pazner.
“In the second half of 2022, our main focus is on integration, delivering on our synergy plans, and driving higher profitability across the business. This focus on integration, execution and de-leverage will unlock the huge potential from the enlarged business.”
888 Holdings did not declare a dividend for HY1 2022.