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Evening Standard
Evening Standard
Business
Daniel O'Boyle

William Hill owner 888 sees shares crash as reforms hit UK revenue

William Hill owner 888 saw shares crash today as it said UK punters spent 18% less on average this year following the introduction of new safer gambling rules.

The setback comes after a chaotic 2023 for the bookie, featuring a money laundering probe, the sudden exit of its boss, profit warnings, activist shareholder pressure and takeover rumours.

888 said “safer gambling changes” meant UK online revenue was down 8% in 2023. Customer numbers grew, but bettors spent less on average.

In April, the Government announced a series of betting reforms, headlined by checks on bettors who deposit more than £125 a month and a maximum stake for online slots. The reforms aren’t law yet but operators including 888 have started to implement them.

The bookie also took an £80 million hit as it moved away from so-called “grey markets” where gambling is not regulated. That left total revenue down 8% at £1.7 billion, while underlying profit margins are at the low end of expectations, at around £308 million.

The firm has already started a £30 million cost-cutting scheme.

The shares plunged by 13.7% to 69.9p today. During a volatile 2023 they rose as high as 130p and fell as low as 50p.

Gambling industry analysts Regulus Partners said: “Over the last decade both 888 and William Hill have taken brief respites from endemic underperformance and claimed the beginning of a turnaround. 

“With £1.6bn of debt, rising underlying costs, a less forgiving macro-environment, and continued regulatory uncertainty, the combined group now needs a real turnaround to survive, in our view.”

Peel HUnt analysts Ivor Jones and Douglas Jack were more optimistic. They said: “We expect revenue to grow, and that the new team will set out a credible plan for margin growth in March. We believe that this kitchen-sinking of numbers was anticipated in the share price, but the growth potential is not.”

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