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(Sharecast News) - Gambling group 888 warned on Wednesday that full-year adjusted underlying earnings would be at the low end of consensus estimates as a result of a heightened level of investment.
888 said 2024 adjusted EBITDA would be at the lower end of estimates for £340.0m-397.0m but said it was confident of its ability to deliver strong shareholder returns in the coming years.
The London-listed group also reported fourth-quarter revenues of £424.0m, up 5% on the previous quarter but down 7% year-on-year.
For the year as a whole, revenues were down 8% at £1.71bn, principally due to a shift away from online markets. UK and Ireland online revenues also fell 8%, down to £658.0m, while retail revenue rose 3% to £535.0m and international revenues dropped 16% to £517.0m.
Chief executive Per Widerström said: "In FY23 the group made important strategic and operational progress in the face of some significant regulatory and compliance headwinds. I am pleased to say that the business has enhanced its foundations for sustainable and profitable growth including significantly strengthening compliance, refining its approach to marketing investment, and increasing its focus on recreational customers.
"I have joined the business at both an exciting and important time. There are clear opportunities to unlock our significant potential, but as a business we know that going forward we must be more proactive in adapting to changes in regulation and technology. We are now taking rapid actions to position the group for future success, reducing our overhead costs and freeing up funds to invest in growth based upon our new strategy and value creation plan."
As of 0910 GMT, 888 shares had sunk 10.25% to 72.70p.
Reporting by Iain Gilbert at Sharecast.com
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