888 Holdings had record success in 2021, but failed to maintain its momentum this year.
In its latest financial health report covering the first quarter of this year, the game operator reported a year-on-year decrease of 1%.
888 Holdings, which operates games on almost every continent, performed well in 4, although it was sluggish in the fourth quarter.Sales increased, costs decreased, and business expansion continued.For now, it's subtle whether the same can be said for 2021 unless things get better.
In its latest financial soundness report, 888 acknowledges that performance fell in all vertical areas in the first quarter of this year.Its total revenue is $ 1 million, a decrease of $ 2 million from the same period last year.
2022 is a sluggish start
888 reported Q1 B2C revenues were down 18% year-over-year.
The segment accounted for $ 2 million of total acquisitions, with B1500C gaming revenue being the largest.B2C sports betting revenue was $ 14 million, down 1% year-on-year to $ 9100 million.This is equivalent to a 2% year-on-year decrease.
As this figure shows, the majority of the B2C gaming business is casino-centric.Through the continuous addition of new online casino games, 888 Casino Gambling is gaining more support from users.
The company, which paid a $ 3 million fine to the UK Gambling Commission (UKGC) in March, is also looking to contribute to the strength of this segment by adding new artificial intelligence chat capabilities.This will help improve the user experience, he said.
The sports betting division of 888 continues to struggle following the withdrawal from the Netherlands.A 28% year-on-year decrease in stakes also contributed to the slowdown.
Further exacerbating this decline was increased spending. The 888 made a lot of marketing and advertising investments in the first quarter, especially to gain a foothold in the North American market.In addition, the World Series of Poker (WSOP) was launched in Michigan, USA and Ontario, Canada, which required additional financial resources.
It's not over yet. The WSOP is likely to arrive in Virginia in May this year, which will require more funding.
B2B results vary
In general, 888's B2B business slowed.Revenue in this segment was $ 900 million, down 6% year-over-year.
This is partly due to the sale of the Bingo business to Broadway Gaming last December.It also turned out that the UK gaming environment is constantly changing, which is a disadvantage for better results.
However, the B2B business has shown slight signs of improvement and is not completely in trouble.In the United States, the 888 saw a slight increase in revenue, helped with the launch in Pennsylvania.
Results are inconsistent compared to last quarter. B4C revenue increased by 2%, but B1B revenue decreased by 2%.
The acquisition of William Hill is important
The acquisition of William Hill's assets in Europe will be essential to the growth of the 888.The acquisition has been delayed, but the company is confident that everything will come together in the next six to eight weeks.
To proceed with the acquisition, 888 needs to clear the UKGC hurdle.Regulators are reviewing William Hill's license, which could be a burden of 888 in the long run.
The company has allocated £ 1500m (US $ 1957 million) in case payments are made.
The 888 will be in a better position if it overcomes this hurdle.Still, analysts see the deal as a big blow, but warn that the company's growth will be slow.
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