888 Holdings PLC (LSE:888) said it expects an ongoing regulatory review into the company’s gambling licence to have no impact on its operations.
Following a record fine being dealt to subsidiary William Hill and a separate investigation into supposed substandard money laundering protections in the Middle Eastern, 888 ruled out the possibility of the UK’s Gambling Commission revoking its licence.
After a scandal-hit year, 888’s interims mark the company’s final update before new chief executive Per Widerström takes the helm in October.
However, this proved little relief, with the gambling firm reporting a £33 million post-tax loss at the half-year stage, down from a £12 million profit in the first six months of 2022.
Pro-forma revenue reduced by 7% to £888.6 million, weighed down by a decline in the company's online business.
Profits were hit by 888’s acquisition of William Hill, which was completed in July 2022, with adjusted earnings per share falling from 7.8p in the first half of last year to 2.7p this time around.
Nonetheless, executive chairman Jonathan Mendelsohn was optimistic about 888’s outlook, given the company’s £68 million reduction in debt to £1.66 billion and anticipated boost from the integration of William Hill.
“We made very strong progress with the execution of our integration plan and we now expect to realise the full £150 million of synergies in 2024, a year earlier than the original plan,” Mendelsohn said.
“I was thrilled to be able to announce the appointment of Per Widerström as our next CEO,” he added.
“Over the coming weeks, I will be working closely with Per to ensure a smooth handover and I am highly confident in his ability to lead the team to realise [888’s] full potential.”