888 Holdings reports 10% revenue decline in Q3 2023,

888 Holdings (LSE: 888), the betting operator overseeing William Hill, reported a 10% decline in revenue for the third quarter of 2023, dropping from £449 million to £405.0 million compared to the previous year. This reduction was attributed to the short-term impact of ongoing enhancements to the business’s sustainability and quality, the company stated on Wednesday.

The company’s performance was influenced by a refined marketing approach in the UK & Ireland Online segment, coupled with the effects of regulatory adjustments and a lower betting net win margin due to customer-friendly sports results. Despite these challenges, customer engagement remained robust, indicating the resilience of 888 Holdings in the face of market fluctuations.

888 Holdings CEO, Per Widerstrom, expressed optimism about the company’s future despite these challenges. Having recently assumed his role, Widerstrom highlighted the strength of the group’s assets and its untapped potential. He acknowledged the regulatory hurdles faced by the company, stating, “Despite the regulatory challenges the Group has faced, we head towards the end of the year with positive momentum, and well-placed to grow in the coming years.”

The Retail division of 888 Holdings performed well due to enhancements in its product offerings. However, international revenue declined by 19% owing to slower-than-expected recoveries from compliance changes in dotcom markets, especially in the Middle East.

Looking ahead, 888 Holdings maintained its projections, anticipating a mid-single-digit revenue decrease in the fourth quarter and an 18% to 19% adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin for 2023. Moreover, the company confirmed that the ongoing conflict in Israel, where it employs around 500 people, was not expected to significantly impact its business operations.

Commenting on the company’s outlook, Widerstrom said, “[888 Holdings] 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.”

On Wednesday, 888 Holdings’ shares experienced a 2.8% decline, trading at 83.35 pence in London.