Betting giant 888 has announced that its sales have been negatively impacted by the introduction of safer gambling rules in the UK. These rules, which include affordability checks, were implemented to protect vulnerable consumers and combat problem gambling.
Sales Fall by 8% Due to Safer Gambling Rules
888, the owner of William Hill, revealed that these new regulations have resulted in an 8% decline in sales in 2023, amounting to £1.71 billion. This represents a £1.85 million decrease compared to the previous year. Online revenue in the UK and Ireland also experienced an 8% drop, reaching £658 million.
Move Away from Unregulated Markets Impacts Revenue
888 stated that its revenue was reduced by approximately £80 million last year due to its decision to withdraw from unregulated markets. In response to these challenges, the company's new CEO, Per Widerstrom, initiated a cost-cutting program worth £30 million in December. This involved closing operations in Bulgaria and making redundancies overseas. 888 currently employs around 11,000 people globally.
Profits Expected to be at Low End of Expectations
The company anticipates that its profits for the year will be at the lower end of expectations. This is attributed, in part, to increased spending on AI and automation. Mr. Widerstrom, who joined 888 in October, expressed the need for proactive adaptation to regulatory and technological changes. He pledged to unveil the company's plans for improvement when the annual results are announced in March. The announcement of this strategy is eagerly anticipated by traders, as evidenced by a 5% drop in shares.
Hornby Reports Sales Growth and Positive Outlook
Model train maker Hornby has reported a 5% increase in sales during the last quarter of the year, indicating positive signs for the company. This growth can be attributed to fans taking advantage of Black Friday deals and purchasing Christmas treats. These results suggest that Hornby is on track to return to profitability after incurring a loss of £5.9 million in the previous year.
Confidence in a Thriving Future
Despite recent struggles in the model railway industry and the closure of Widnes-based rival Hattons Model Railways, Hornby remains confident in its future success. The company, which has been manufacturing model trains since 1920, is British-owned and boasts celebrity fans such as Sir Rod Stewart and James May. The ownership of classic toy brands such as Corgi, Scalextric, and Airfix further enhances Hornby's position in the market.
B&Q Reports Surge in Sales of Cold Weather Products
DIY chain B&Q has witnessed a significant increase in sales of ice and snow-related products as customers prepare for the winter season. The company reported a 62% rise in sales of these items. Additionally, searches for heaters on the B&Q website have increased by 203%, while searches for draught excluders have risen by 169%.
Window Insulation and Grit Salt in High Demand
Among the various products, window insulation has seen the most significant surge in interest, with a staggering 1,153% increase in searches compared to the previous week. Furthermore, searches for grit salt have surged by 900%. These figures reflect the growing concerns of customers regarding the cold weather and their desire to prepare their homes accordingly.
BP Appoints New CEO Following Scandal
Oil giant BP has announced the appointment of a new CEO to replace Bernard Looney, who resigned in September after failing to disclose relationships with company colleagues. Murray Auchincloss, who has been acting as the interim CEO since the autumn, has been selected for the role.
Continuity in Leadership
Murray Auchincloss, a Canadian, has been chosen as a "continuity" choice to lead BP. He will receive a salary of £1.45 million, excluding pension and bonus. It is worth noting that Auchincloss is also in a relationship with a BP colleague, but he disclosed this information prior to his appointment as CEO.
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