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888 generated revenue of £431m in Q1 2024, slightly ahead of the £420-430m guidance range previously set by the company.

While this represented a 3% year-on-year decrease, revenue was up 2% sequentially, reflecting a positive trend quarter-on-quarter.

The company anticipates a return to year-on-year revenue growth starting from Q2 2024.

888 said this growth trajectory aligns with the mid-term target of achieving a 5-9% annual revenue increase throughout the full year of 2024.

UK&I online division

Revenue in the UK and Ireland online division experienced a 1% year-on-year decrease, reaching £164.4m.

Gaming revenue rose by 4% to £101.9m, offsetting an 8% decline in betting revenue, which fell to £62.5m.

The decrease in betting revenue was attributed to higher customer investment during the Cheltenham Festival compared to the previous year.

Despite the revenue drop, there was an increase in the number of average monthly active customers, up by 9% compared to Q1 2023.

888 foresees revenue growth in the UK&I Online division in the upcoming quarters, driven by robust customer engagement, new product launches, and the incorporation of safer gambling changes.

International division

The international segment of 888 demonstrated positive sequential growth, with revenue in Q1 2024 surpassing that of Q4 2023 by 6%.

Following significant compliance changes in February 2024, the segment returned to year-on-year growth with revenue up 4% in February and March, driven by the core international markets of Italy, Spain and Denmark.

Nonetheless, the segment reported a 2% year-on-year decline to £136.5m in Q1 2024.

While gaming revenue increased by 2% to £116m, betting revenue fell by 22% to £20.5m.

Retail

Retail revenue decreased by 7% to £130.3m, reflecting shop optimisation efforts and a challenging basis of comparison with the previous quarter, according to 888.

Q1 2024 revenue remained consistent with that of Q4 2023.

CEO perspective

888 CEO Per Widerström expressed satisfaction with the Q1 2024 performance, highlighting strong player volumes and improved revenue run rates.

“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 Q2 2024,” he added.

“I was delighted to outline our multi-year value creation plan alongside our full year results in March, and am pleased to report a strong quarter of progress against these plans.

“We are moving decisively and at pace to position our company for long-term success, and I look forward to providing further updates about our progress in the coming months,” Widerström concluded.

In Q1 2024, 888 presented its new value creation plan (VCP) and medium-term financial targets.

This plan aims to deliver annual revenue growth of 5-9%, improve adjusted EBITDA margin by approximately 100 basis points per year, and focus on deleveraging to reach a net leverage of 3.5x or below by the end of 2026.

The company also announced significant strategic initiatives during Q1 2024, including a reset of its operating model and the impending launch of a new corporate identity, evoke plc.

Additionally, 888 concluded the strategic review of its US B2C business, with plans to sell selected assets to Hard Rock Digital and close remaining operations during 2024, subject to regulatory approvals, resulting in an ongoing EBITDA improvement of £25m per year from 2025.

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