William Hill owner 888 moving 'at pace' as it posts revenue ahead of guidance in trading update

The parent company of William Hill said it was moving into position for long-term success after posting revenues ahead of guidance in a trading update for the first quarter of 2024 on Friday morning.

888 said revenue during the period had reached £431 million, slightly ahead of the £420-430m guidance range the company had outlined recently.

That figure was still down three per cent on 2023, although revenue was up two per cent relative to the final quarter of 2023, which 888 said reflected the continuation of positive quarter-on-quarter trends. 

In the company's UK and Ireland online segment, revenue was down one per cent, with a four per cent growth in gaming more than offset by reduced sports revenues, which 888 said was primarily driven by increased customer investment across the Cheltenham Festival relative to the previous year.

The number of average monthly active customers was up nine per cent.

Revenue was down seven per cent in the company's retail division, partly down to a two per cent reduction in the number of betting shops run by the company.

Chief executive Per Widerstrom said: "I am pleased to report that first quarter revenue was slightly ahead of our guidance, with strong player volumes converting into 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 the second quarter.

"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."

David Brohan, gaming and leisure analyst at stockbrokers Goodbody, described 888's update as "solid", adding it was "encouraging to see the improving trends" in the UK and Ireland division.

888's share price was up 2.6p to 82.4p on Friday morning.

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