888 Holdings PLC (LSE:888) has announced a decline in third-quarter revenue on the back of measures to encourage safer gambling in the UK and tougher regulation abroad.
UK and online revenue decreased by 10% to £157.2 million over the third quarter, 888 said in a statement, with unfavourable sports results during September - particularly in football - also weighing in.
This mirrored the 10% decline in overall group revenue, which fell to £405 million, leaving the William Hill owner backing lowered guidance laid out in late September.
International revenue faced a 19% hit meanwhile, owing to significant impact from dotcom market compliance changes, especially in the Middle East.
“This is a business with a very strong foundation for profitable growth,” newly appointed chief executive Per Widerström commented.
“But, there are clearly also several areas for improvement which we will focus on to unlock our full potential and drive value creation.”
888 added fourth-quarter revenue would likely fall by the mid to single digits, while full-year adjusted EBITDA margins were anticipated between 18% and 19%.
Shares fell 1.7% to 84.29p.