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888 Holdings PLC on Wednesday said revenue declined in the first quarter, with the gambling firm's exit from the Netherlands hitting monthly punter numbers.
In the three months to March 31, revenue declined 18% to $224 million from $273 million in a year earlier. Quarter-on-quarter, however, revenue inched up from $222 million.
888 said average monthly active users fell 8% yearly, following a record figure a year earlier, ‘reflecting the temporary exit from the Netherlands’.
Back in October, regulatory changes from the Dutch Gambling Authority came into effect. As a a result, 888 ‘took the decision to cease provision of services in the Netherlands’.
At the time, it said the timing of any licence award in the Netherlands ‘remains unclear’.
For the first quarter of 2022, 888 said it performed well in its key regulated markets. The FTSE 250 constituent drew particular attention to its showing in the US, Portugal and Romania.
On Tuesday, 888 said it had hired Howard Mittman to be president of 888 US. Mittman will run 888's US operations, including its partnership for SI Sportsbook with Authentic Brands Group, the owner of the Sports Illustrated brand. He most recently was chief executive officer of Bleacher Report Inc, a sports news website.
Annually, 888's fortunes declined in the UK, ‘impacted by market-wide trends including the impact of increased player restrictions’. The gambling market in the UK has come under increased regulatory scrutiny in recent years.
888's first quarter update comes in the wake of the company announcing a cheaper deal to buy non-US William Hill assets.
888 earlier in April announced the enterprise value of William Hill assets had been revised downwards to £1.95 billion to £2.05 billion from £2.2 billion previously.
It is buying the assets from Caesars Entertainment Inc, which agreed a £2.9 billion buyout of former London listing William Hill PLC back in September 2020.
888 shares were 2.7% lower at 208.40 pence each in London on Wednesday morning.
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