William Hill owner 888 to close office and cut jobs as sales slump

17 January 2024 , 10:22

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The owner of William Hill, 888, has reported a fall in sales (Image: PA Archive/PA Images)

The owner of William Hill, 888, revealed a dip in annual sales following tighter gambling control measures in the UK.

The firm also shared that advancements in AI and automation might impact its profit margin. The betting giant is eyeing £30m in savings, in part by closing its Bulgarian office and making job cuts abroad.

In 2023, the company's total sales fell by 8% to £1.71bn from £1.85m the previous year. The drop was due to the company pulling away from "dotcom markets".

These are places where 888 runs but doesn't market its website leading to a £80m hit on annual revenues. The gambling firm's sales were impacted by new safety measures introduced in the UK aiming to protect vulnerable individuals from becoming problem gamblers.

This change in advertising strategy has resulted in an 18% drop in the average revenue per customer. However, the monthly active customer base grew by 11%. In December 2023, the company launched a cost-saving scheme aiming to save around £30m.

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Chief executive Per Widerstrom announced that the company is taking "rapid actions to position the group for future success". This includes "reducing our overhead costs and freeing up funds to invest in growth".

A spokesperson confirmed the "difficult decision" to close one of its 11 global offices, in Sofia, Bulgaria's capital city, and make some redundancies in Israel. However, they also revealed plans to invest more in areas like intelligent automation and AI-powered data and insights.

The company is shifting its focus towards "recreational customers" and strengthening its gambling protections. Despite expecting adjusted earnings for 2024 to be at the "low end" of its guidance, 888 believes these plans will improve long-term profitability.

Mr Widerstrom, who took over as CEO in October, said: "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."

"The financial performance of the group must improve, and the actions we are taking will build a leaner, more agile and more effective organisation structure, as well as establishing a more effective management of the customer and product life cycle." Meanwhile, 888's shares wobbled, falling nearly 9% on Wednesday morning.

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Lawrence Matheson