Confirming the news to InnovateChange today (17 January), 888 stated that they are implementing changes to their organizational structure in order to align with their long-term strategic plans. The company did not disclose which departments will be affected by the redundancies. An 888 spokesperson said, “We will be offering our full support to those colleagues who are impacted.”
In their trading update for the financial year and Q4 of 2023, 888 reported an 8% decline in group revenue. The decrease was primarily driven by a shift away from dotcom markets, resulting in £80m in lost revenues. The implementation of additional safer gambling measures in the UK also affected the customer mix, leading to changes in revenue. However, 888 emphasized that their focus on sustainable revenue and profitability has led to a “higher quality” and “more sustainable” business mix, with 95% of revenue being generated from regulated and taxed markets.
Despite a decline in UK and Ireland online revenue by 8%, 888 expects adjusted EBITDA for this segment to be significantly higher year over year due to synergy delivery and efficient marketing. International revenue experienced a 16% drop as a result of compliance changes in dotcom markets, although Spain and Italy showed double-digit growth. On the other hand, retail revenue increased by 3%, attributed to improved product offerings.
In terms of management changes, Phil Walker will be leaving his position as chief commercial officer, following a series of announcements regarding 888’s management team. Sean Wilkins has been appointed as the chief financial officer, while Rik Barker will assume the role of chief information technology officer and Ian Gallagher has been appointed as chief product officer.
The update coincides with the one-year anniversary of Itai Pazner’s departure as CEO of 888. Lord Mendelsohn initially served as executive chair before the arrival of Per Widerström as CEO in October 2023.
Looking ahead, 888 is optimistic about its prospects for 2024, with a fresh management team and plans for cost savings and increased marketing spend. The company expects to outline its long-term strategy in late March alongside its full-year results.
