Betting giant 888 says safer gambling rules have hit sales by 8%
BETTING giant 888 says safer gambling rules have hit sales.
The new edicts, including measures such as affordability checks, were introduced in the UK to protect vulnerable consumers and fight problem gambling.
But the William Hill owner said they contributed to sales falling by eight per cent in 2023 to £1.71billion, a £1.85million dip from the previous year.
In the UK and Ireland, online revenue also fell by eight per cent, to £658million.
888 said a move away from unregulated markets had slashed its revenue by around £80million last year.
The new boss, Per Widerstrom, unleashed a £30million cost-cutting programme in December.
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The company, which in addition to the William Hill shops makes its money from online casinos, poker and sports betting, has closed operations in Bulgaria and made redundancies overseas.
It employs about 11,000 globally.
Profits for the year are likely to be at the low end of expectations, it said, after higher spending on AI and automation also took its toll.
Mr Widerstrom, who joined in October, said: “We must be more proactive in adapting to changes in regulation and technology.”
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He said the financial performance must improve and pledged to unveil plans when the annual results are announced in March.
Shares fell by about five per cent as traders held off on the business as they wait to hear its new strategy.
PAY TAKES BITE INTO CARVERY
HARVESTER and Toby Carvery owner Mitchells &; Butlers has warned that the upcoming increase in the national living wage will have a big affect on the firm’s costs.
The national living wage will rise by 9.8 per cent for workers aged 23 and over from April this year and is set to hit many hospitality businesses.
But on the back of a 7.2 per cent growth in the past eight weeks, M&B reckons it is well placed for a strong 2024.
It reported record Christmas Day sales with some 229,000 meals served at its sites.
The return of work and festive parties drove seasonal sales up 9.7 per cent over the festive period.
Boss Phil Urban said: “With the unique strengths of our business, including a diverse portfolio of established brands and enviable estate locations, we are well positioned to continue to grow profitability and market share in the year ahead.”
HORNBY'S ON TRACKS
MODEL train maker Hornby is giving off good signals by reporting a five per cent sales growth in the last quarter of the year.
Fans took advantage of Black Friday deals and splashed out on Christmas treats. The Margate-based firm said it is now on course to return to profit after losing £5.9million in the previous year.
Chief executive Olly Raeburn said: “We continue to make good progress on our key strategic initiatives and look forward to a return to profitable growth.”
The model railway industry has been struggling recently and Widnes-based rival Hattons Model Railways revealed earlier this month that it will cease trading after 77 years.
But with celebrity fans such as Sir Rod Stewart, who has collected model railways since childhood, and James May, British-owned Hornby is confident of a thriving future.
It made its first model trains in 1920 and also owns classic toy brands such as Corgi, Scalextric and Airfix.
WIZZ AIR U-TURN
BUDGET airline Wizz Air has been forced to hand £1.2million back to British passengers for cancelled flights, after initially rejecting their claims.
The Civil Aviation Authority said the Hungarian airline had made around 6,000 additional refunds for flight disruption from March 2022.
Airlines which cancel flights are legally required to cover the cost of replacement trips.
Wizz Air said it has now introduced an automated refund process.
CAA consumer director Paul Smith said: “This is good news for passengers.”
B&Q WARMS TO COLD SNAP
DIY chain B&Q said sales of ice and snow-related products increased by 62 per cent this week as shoppers stocked up for the bitter winter weather.
Searches for heaters on its website climbed 203 per cent, while draught excluder searches climbed 169 per cent.
But the most interest was for window insulation, which saw a 1,153 per cent increase in searches compared to last week. Grit salt searches surged by 900 per cent.
Tuesday evening was the coldest January night since 2019, the Met Office said, with temperatures in Scotland falling to as low as -14C.
BAG SALES DROP
UPMARKET handbag maker Mulberry said revenues dropped 8.4 per cent in the 13 weeks to December 30.
Rival Burberry saw a similar sales slowdown as wealthy shoppers cut spending after cost-of-living rises.
Luxury firms were also hit by the Government’s move to axe VAT-free shopping.
Mulberry said this year’s figures will be hit by the opening of new stores in Sweden and Australia and by investments in technology.
The update saw its shares fall by around five per cent.
BP’S NEW TOP MAN
OIL giant BP has finally replaced its scandal-hit boss Bernard Looney, who resigned in September after failing to disclose relationships with company colleagues.
Murray Auchincloss, 53, the acting boss since the autumn, gets the job.
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The “continuity” choice will earn £1.45million before pension and bonus.
The Canadian is also in a relationship with a BP colleague, but told the firm about it before being appointed.