William Hill owner 888 Holdings PLC (LSE:888)'s revenue came in slightly ahead of expectations over the first quarter and should jump in the second.
At £431 million, revenue over the three months to March was ahead of previous guidance of up to £430 million, but down 3% on a year ago, 888 reported.
This came as sales across the company’s four divisions fell, including by up to 7% in 888’s retail wing on shop optimisation plans and challenging comparables from last year.
Revenue was up 2% relative to the fourth quarter of 2023, while 888 said it would return to a year-on-year increase over the coming period, prompting full-year growth to sit in line with targets of 5-9%.
“Having lapped various regulatory and compliance changes during the quarter, and with increased marketing investment supported by an exciting product pipeline, we remain confident in a return to growth from the second quarter of 2024,” boss Per Widerström said.
Average monthly active customers increased by 6% to 1.84 million, fuelled by a jump in 888’s UK and online segment, including from hiked spending at Cheltenham Festival.
888 added a cost-saving plan was progressing well, with £30 million set to be released for reinvestment this year.
The sale of the company's US assets is also due to be finalised this year, which 888 said would contribute an annual £25 million boost to earnings.
“We are moving decisively and at pace to position our company for long-term success,” Widerström added.