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888 Holdings Reports Strong Revenue and Adjusted EBITDA Growth for FY22 Despite Revenue Decline

The online casino provider 888 Holdings announced a jump in profit and adjusted EBITDA for FY22, with revenue ascending by 74% to £1.24 billion and adjusted EBITDA rising by 82% to £217.9 million. However, once the William Hill acquisition’s revenue impact was considered, the corporation experienced a 3% reduction in organic sales compared to 2021.

Measures Taken to Mitigate AML Risk

All accounts in the Eastern VIP operating zone were suspended by 888 Holdings, which harmed the business’s revenue and regulatory uncertainties. But the business has finished looking internally into some “shortfalls in best practices” in its regional operations. To reduce the danger of AML, it has implemented various new policies and processes. With no more effects anticipated, the company has started restoring accounts and enrolling new clients. The board anticipates the cohort will recover 40–50% of the revenue, resulting in a £25–30 million revenue headwind for FY23.

Compared to 2021, the corporation made less money in 2022. Instead of making a £59 million profit, it lost £115.7 million. The group leader, Mendelsohn, said that their money during that time was affected by their efforts to make sure the players were not in danger. They are doing a lot to keep players safe. The company had trouble following the rules in the Middle East. But, they learned how important having an excellent risk management system is.

888 Holdings Takes Steps to Address Compliance Issues and Seeks New CEO to Lead Recovery Efforts

Search for New CEO to Lead Recovery Efforts

The interim executive chair has been filled by chairman Mendelsohn since CEO Itai Pazner’s resignation in January. According to 888 Holdings, the board’s efforts to find a new CEO are “good.” To maintain continuity for the board and management team, Yariv Dafna, the chief financial officer and executive director, will hold onto his positions till the end of 2023.

Financial Flexibility and Operational Management

The board’s top goal is to identify a new CEO who can guide the business through its recovery from regulatory problems and revenue reduction. 888 Holdings has a powerful operational management team in place. The company has £170 million in its bank account and can borrow up to £150 million if needed, giving it financial flexibility as it manages its current issues.

Conclusion

Though 888 Holdings reported a spike in sales and adjusted EBITDA for FY22, the company has encountered difficulties, such as compliance problems and revenue decreases. However, the business has taken steps to deal with them and is looking for a new CEO to oversee its recovery efforts.

888 Holdings is in a strong position to overcome these challenges and continue delivering value to its stakeholders because of a strong operational management team and financial flexibility.

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