REG - 888 Holdings plc - Q1 2024 Trading Update

888 HoldingsAnnouncement

19/04/2024 07:00

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RNS Number : 2323L  888 Holdings plc  19 April 2024

19 April 2024

 

888 Holdings Plc

("888" or "the Group")

 

Q1 2024 Trading Update

Q1 2024 revenues slightly ahead of guidance; no change to full year
expectations

 

888 (LSE: 888), one of the world's leading betting and gaming companies with
internationally renowned brands including William Hill, 888 and Mr Green,
today announces a trading update for the three months ended 31 March 2024
("Q1-24" or the "Period"). Further detail on the financial results by division
is included as an appendix to this announcement.

Financial highlights

·    Group: Revenue of £431m, slightly ahead of the £420-430m guidance
range previously outlined at the FY23 Results on 26 March 2024. Revenue up 2%
relative to Q4 2023, reflecting a continuation of positive sequential
quarter-on-quarter trends. The Group continues to expect revenues to return to
year-on-year growth from Q2 2024 onwards, with full year 2024 revenue growth
expected to be consistent with the mid-term target of 5-9% annual growth.

·    UK&I Online: Continued strong customer engagement with average
monthly actives +9%. Revenue -1% with a return to growth in gaming (+4%) more
than offset by reduced sports revenues, primarily driven by increased customer
investment across the Cheltenham Festival relative to the prior year. Revenues
are expected to return to year-on-year growth from Q2 onwards driven by strong
customer engagement, new product launches, and the annualization of safer
gambling changes.

·    International: Continued positive sequential growth with Q1 2024
revenues 6% higher than Q4 2023. Following the annualisation of significant
compliance changes from February 2024, the segment returned to year-on-year
growth with 4% growth in February and March, driven by the Core markets of
Italy, Spain and Denmark.

·    Retail: Revenues -7%, reflecting shop optimisation (2% reduction in
shops year-over-year) and challenging basis of comparison, with Q1 2024
revenue consistent with Q4 2023.

Strategic highlights

·    On 26 March 2024 the Group announced its new strategy, Value Creation
Plan (VCP) and clear medium-term financial targets, namely to grow revenue by
5-9% per year, improve adjusted EBITDA margin by approximately 100bps per year
and focus on deleveraging to reach net leverage of 3.5x or below by the end of
2026. Strategic focus on embedding new ways of working across the business.

·    New corporate identity - evoke plc - to better reflect new 'One
Company' approach, to be launched in May 2024, subject to shareholder approval
at the AGM on 13 May 2024.

·    Reset of operating model well progressed, with £30m 2024 operating
cost savings being reinvested into more profitable marketing to drive growth,
in-line with the VCP.

·    Conclusion of strategic review of US B2C business announced on 28
March 2024, with the sale of selected assets and closure of remaining
operations expected during 2024 subject to regulatory approvals. This is
expected to deliver an ongoing EBITDA improvement of £25 million per year
from 2025.

Per Widerström, CEO of 888, commented:

"I am pleased to report that Q1 2024 revenue was slightly ahead of our
guidance, with strong player volumes converting into improved revenue run
rates. Having lapped various regulatory and compliance changes during the
quarter, and with increased marketing investment supported by an exciting
product pipeline, we remain confident in a return to growth from Q2 2024.

 

I was delighted to outline our multi-year value creation plan alongside our
full year results in March, and am pleased to report a strong quarter of
progress against these plans. We are moving decisively and at pace to position
our company for long-term success, and I look forward to providing further
updates about our progress in the coming months."

 

 Enquiries and further information:
 888 Holdings Plc                        +44(0) 800 029 3050
 Per Widerström, CEO

 Sean Wilkins, CFO

 Vaughan Lewis, Chief Strategy Officer

 

 Investor Relations

 James Finney, Director of IR                                                                                                                                                                  ir@888holdings.com (mailto:ir@888holdings.com)

 Media                                                                                                                                                                                         888williamhill@hudsonsandler.com (mailto:888williamhill@hudsonsandler.com)
 Hudson Sandler                                                                                                                                                                                +44(0) 207 796 4133

 Alex Brennan / Charlotte Cobb / Andy Richards

 

 

About 888 Holdings Plc:

888 Holdings plc (and together with its subsidiaries, "888" or the "Group") is
one of the world's leading betting and gaming companies. The Group owns and
operates internationally renowned brands including William Hill, 888, and Mr
Green. Incorporated in Gibraltar, and headquartered and listed in London, the
Group operates from offices around the world.

The Group's vision is to make life more interesting and its mission is to
delight players with world-class betting and gaming experiences.

Find out more at:

http://corporate.888.com/ (http://corporate.888.com/)

 

Important Notices

This announcement may contain certain forward-looking statements, beliefs or
opinions, with respect to the financial condition, results of operations and
business of 888. These statements, which contain the words "anticipate",
"believe", "intend", "estimate", "expect", "may", "will", "seek", "continue",
"aim", "target", "projected", "plan", "goal", "achieve", words of similar
meaning or other forward looking statements, reflect 888's beliefs and
expectations and are based on numerous assumptions regarding 888's present and
future business strategies and the environment 888 will operate in and are
subject to risks and uncertainties that may cause actual results to differ
materially. No representation is made that any of these statements or
forecasts will come to pass or that any forecast results will be achieved.
Forward-looking statements involve inherent known and unknown risks,
uncertainties and contingencies because they relate to events and depend on
circumstances that may or may not occur in the future and may cause the actual
results, performance or achievements of 888 to be materially different from
those expressed or implied by such forward looking statements. Many of these
risks and uncertainties relate to factors that are beyond 888's ability to
control or estimate precisely, such as future market conditions, currency
fluctuations, the behaviour of other market participants, the actions of
regulators and other factors such as 888's ability to continue to obtain
financing to meet its liquidity needs, changes in the political, social and
regulatory framework in which 888 operates or in economic or technological
trends or conditions. Past performance of 888 cannot be relied on as a guide
to future performance. As a result, you are cautioned not to place undue
reliance on such forward-looking statements. The list above is not exhaustive
and there are other factors that may cause 888's actual results to differ
materially from the forward-looking statements contained in this announcement.
Forward-looking statements speak only as of their date and 888, its respective
parent and subsidiary undertakings, the subsidiary undertakings of such parent
undertakings, and any of such person's respective directors, officers,
employees, agents, affiliates or advisers expressly disclaim any obligation to
supplement, amend, update or revise any of the forward-looking statements made
herein, except where it would be required to do so under applicable law. No
statement in this announcement is intended as a profit forecast or a profit
estimate and no statement in this announcement should be interpreted to mean
that the financial performance of 888 for the current or future financial
years would necessarily match or exceed the historical published for 888.

Appendix: Divisional Summary

 

Q1 2024

 

                                   UK&I Online                                              Retail                                             International                                       Group

   Unaudited                       Q1                    Q1                    %            Q1                 Q1                 %            Q1                 Q1                  %            Q1            Q1            %
   £m                              2024                  2023                  Change       2024               2023               Change       2024               2023                Change       2024          2023          Change

   Average monthly actives (000s)  1,274                     1,172             +9%                                                             561                        559         +0%          1,835             1,731     +6%

   Sportsbook stakes               630.6                     694.8             -9%          393.5                  411.1          -4%          327.2                  321.3           +2%          1,351.4        1,427.2      -5%
   Sportsbook net revenue margin   9.9%                  9.8%                  +0.1ppt      19.3%              19.8%              -0.5ppt      6.3%               8.2%                -1.9ppt      11.8%         12.3%         -0.5ppt

   Betting revenue                        62.5                  68.1           -8%                 76.0               81.2        -6%                 20.5               26.3         -22%             159.0         175.7     -10%
   Gaming revenue                      101.9                    97.8           +4%                 54.3               58.4        -7%              116.0              113.6           +2%              272.2         269.8     +1%
   Total revenue                       164.4                 166.0             -1%              130.3              139.7          -7%              136.5              139.9           -2%              431.2         445.5     -3%

 

 

 

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