888 Holdings PLC (LSE:888) reported a fall in revenue and profits in the first half of the year but believes the business is on a “stable trend” for the rest of the year, having completed the acquisition of William Hill early in the second half.
Profit before tax plunged 66% to £14.4mln as revenue fell 13% to £332.1mln, which the FTSE 250 company blamed on greater control on gambling in the UK and the closure of its Netherlands business.
However, on a pro forma basis, which is based on the inclusion of the acquired William Hill business and the exclusion of the sold bingo arm, revenue would have been down only 1% at £942.2mln.
“The combination with William Hill, which we completed soon after the period end, transformed the group and creates very strong foundations to support our ambitious growth plans,” said chief executive Itai Pazner.
The acquisition of William Hill increased the mix of regulated and taxed revenues to 85%, “providing a platform for strong future growth,” while the bingo sale for £37mln enabled the group to “focus on its core betting and gaming platform”.
Looking forward, revenue in the second half is expected to be "in line with revenue in the first".
The group is also expanding into America, with a planned launch in Virginia and Michigan in the second quarter.
“The group's financial performance in the period primarily reflects market conditions in the UK,” Pazner added.
“However, we believe the proactive actions we have taken to increase player protections and drive higher standards of player safety have put the group in an even stronger position for the future.”