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.”