888 Holdings PLC (LSE:888) on Wednesday cautioned that extra investment would mean 2024 adjusted EBITDA would be at the low end of the consensus range of £340-397 million.
But new chief executive Per Widerström said he was confident of delivering strong shareholder returns in the coming years.
Widerström intends to provide details on 888’s evolved strategic and value creation plans, including new medium-term financial and strategic targets, alongside its full-year 2023 results, which are expected to be released on 26 March.
The betting group, which owns William Hill, reported fourth-quarter revenue of £424 million, 5% higher than the previous quarter, but 7% lower year over year.
The firm said full-year revenue totalled £1.71 billion, down 8% year over year driven primarily by a proactive mix shift away from dotcom markets, which impacted revenues by around £80 million.
Revenue was further hit by customer mix changes in the UK as a result of additional safer gambling measures, alongside the change in the group's marketing approach to focus more on sustainable revenue and profitability.
UK&I Online revenue fell 8% to £658 million, Retail revenue rose 3% to £535 million and International revenue dropped 16% to £517 million.
888 expects the £150 million synergy savings target to be delivered in 2024, helping to partly mitigate the impact of regulatory and compliance changes.
It now expects adjusted EBITDA margin for financial 2023 to be approximately 18%, consistent with the previously indicated range of 18-19%.