REG - 888 Holdings plc - Sale of US B2C assets to Hard Rock Digital

888 HoldingsAnnouncement

28/03/2024 07:00

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RNS Number : 6065I  888 Holdings plc  28 March 2024

28 March 2024

888 Holdings Plc

("888" or "the Group")

 

Sale of US B2C assets to Hard Rock Digital

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 the conclusion of its strategic review of US B2C operations.
As a result of the review the Group has agreed the sale of selected assets to
Hard Rock Digital ("HRD"), completion of which is conditional upon, amongst
other items, relevant regulatory approvals. It is expected that the disposal
will be completed in a number of phases, with final completion expected in Q4
2024.

The Group has commenced a controlled exit of its remaining US B2C operations,
with the intention of fully ceasing operations by the end of 2024, subject to
regulatory approvals and process. The exit of US B2C operations is expected to
realise a recurring annualised benefit to Adjusted EBITDA of approximately
£25 million from 2025 onwards. The Group intends to reinvest approximately
£10 million of these savings into growth and value creation initiatives.

The combined net impact of the sale and exit of US B2C were already
incorporated into the financial targets that the Group announced on 26 March
2024. The Group currently expects to incur net one-off cash costs of
approximately £40 million in relation to the exit of the US, inclusive of the
brand licence termination fee already announced, with such payments occurring
from 2024 until 2029.

 

 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

 

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