Revenue falls for 888 in UK despite half-yearly profit

The Gibraltar-based online bookmaker 888’s half-yearly profit in the UK remains intact, even though the company faces a noticeable fall in revenue owing to the recent regulatory crackdown.

The company’s pre-tax profit is 60.1 million US dollars (£45.7 million) for the first six months of 2018. It reported a loss of 17.3 million US dollars (£13.1 million) in the same period last year.

The overall revenue increased by 5 per cent to 283.9 million US dollars (£216 million), thanks mainly to the surge in Spain and Italy. But in the UK, the company’s main market, revenue fell by 18 per cent to 86.5 million US dollars (£65.8 million), which it put down to revisions to its practices to “align with the stricter regulatory environment across the market”.

Shares slumped over 8% to 206p following the update.

The company is stricter in anti-money laundering processes and taking more active steps in increasing customer due diligence and protection

Last year, 888 was slapped a penalty of a whopping £7.8 million by the Gambling Commission of the UK for “serious failings” in its handling of vulnerable customers, including one who went on a £1.3 million gambling binge after stealing £55,000 from their employer.

The firm said on Thursday: “The actions that 888 is taking in the UK market include tightening anti-money laundering processes and increasing customer due diligence and protection.”

 “These actions are not only the right thing to do but also position the group for long-term development and with a clear competitive advantage in what remains the world’s largest regulated online gaming market.”

As a result of 888’s actions, revenue from the UK now represents just 32 per cent of total revenue, down from 39 per cent.

Source: PA