888 Holdings PLC (LSE:888) continues to be impacted by greater UK online regulation as the William Hill owner reported a fall in revenue.
Revenues for the three months ended 30 September fell 7% compared to the same period last year, down to £449mln, which was “primarily driven by enhanced UK online player safety measures and the closure of the Netherlands.”
UK revenue declined 14% year-on-year due to a reduction in the average spend per player, down 14%, following more stringent measures introduced in the second half of last year.
“Revenues during the third quarter continued the trends we have seen in recent quarters, with relatively resilient trading across our main international markets and in our retail estate, but continued pressure on our UK online revenues in light of the ongoing impact of the enhanced player safety measures,” said chief executive Itai Pazner.
“We are changing the mix of our business to a lower spending, more recreational player base that gives us confidence in the long-term potential for our UK business.”
Despite the macro-environment and ongoing UK pressures, 888 expects fourth-quarter revenue to grow ahead of third-quarter results and be similar to last year’s levels.
Amid rising interest rates and gross debt that stood at £1.8bn, the group said it expects £150mln of interest charges for the full year and increased 2023 guidance to around £170m from £130-140mln in August.
It said it has set up hedging arrangements so that roughly 35% of interest costs are now fixed.