TIDM888
RNS Number : 9132N
888 Holdings plc
28 September 2023
28 September 2023
888 Holdings Plc
("888" or "the Group")
Update on current trading and FY23 guidance
Ongoing improvements to the sustainability and quality of
revenues impacting short-term performance while synergy delivery
remains on track and the Group is focused on delivering future
growth
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 an update on current
trading and FY23 guidance.
Current trading commentary
Performance across the Group has been mixed, with overall
revenue for Q3 2023 expected to be down around 10% to approximately
GBP400m. The Group has made significant and ongoing improvements to
the sustainability and quality of the mix of the business, and
while this is weighing on short-term performance, the Group
continues to drive strong double digit active customer growth. The
main drivers of the year-over-year revenue decline include:
-- Ongoing significant impact from compliance changes
implemented in dotcom markets, with slower recovery in customer
activity and revenues than initially anticipated
-- Customer friendly sports results impacting win margin across
both UK and International markets in September
-- The ongoing impact of safer gambling changes within the UK,
with trends consistent with prior commentary, with strong growth in
active customers supporting a return to revenue growth in 2024
-- A short-term impact from the change in marketing approach to
focus on higher return marketing and in line with the Group's clear
market focus strategy and refined brand-led marketing approach
Retail continues to perform strongly, with broadly stable
revenues relative to last year despite customer friendly sports
results, and no change to the expectation of mid-single digit
revenue growth in the full year, with strong customer engagement
and the positive impact of the continued rollout of additional
proprietary SSBTs and expansion of content on our retail gaming
platform.
As of Friday 22 September, cash (net of customer balances) was
approximately GBP162 million, with undrawn committed facilities of
GBP150 million, giving total liquidity of more than GBP300
million.
Outlook and FY23 guidance
-- Synergy delivery is on track and significant cost savings are
being delivered that have helped to mitigate the year-to-date
revenue performance versus initial expectations. Further synergy
opportunities have been identified but additional savings will be
reinvested in growth initiatives, with the Group having significant
growth opportunities available to it underpinned by its new
operating model and brand-led marketing strategy
-- The Group now expects revenues in Q4 2023 to be sequentially
higher than Q3 2023 but lower year over year by a mid-single digit,
before returning to growth in 2024
-- The priority of driving sustainable growth in 2024 and beyond
means that FY23 Adjusted EBITDA margin is now expected to be
approximately 18-19%, with the emphasis on investing in and
focusing the business to deliver its previously stated 2025
targets, which remain unchanged
Lord Mendelsohn, Executive Chair of 888, commented:
"This has been an important quarter for the business with the
announcements of Per Widerström as our new CEO and Sean Wilkins as
our new CFO, who I am very confident will lead the business through
its next phases of growth and I look forward to Per starting as CEO
in mid-October.
We are making significant strides to improve the quality and
long-term sustainability of our revenues, but performance in Q3 has
been below our expectations, and this means we now expect to end
the year with EBITDA below our prior expectation.
The hard work the team has undertaken so far this year has set
very strong foundations for the future of the business and our
synergy delivery is well on track. We are strongly focused on
investing to deliver good levels of expected revenue growth in 2024
as we progress towards our clear target of more than GBP2 billion
of revenue in 2025 and I look forward to the coming years with
confidence."
This announcement contains inside information.
Enquiries and further information:
888 Holdings Plc +44(0) 800 029 3050
Lord Mendelsohn, Executive Chair
Vaughan Lewis, Interim CFO and Chief Strategy Officer
Investor Relations ir@888holdings.com
James Finney, Director of IR
Media 888williamhill@hudsonsandler.com
Hudson Sandler
Alex Brennan / Charlotte Cobb / Andy Richards +44(0) 207 796 4133
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. In addition, the
Group operates the SI Sportsbook and SI Casino brands in the US in
partnership with Authentic Brands Group.
Incorporated in Gibraltar, and headquartered and listed in
London, the Group operates from offices around the world and
employs over 11,000 people globally.
The Group's mission is to lead the gambling world in creating
the best betting and gaming experiences, bringing unrivalled
moments of excitement to people's day-to-day lives. It achieves
this by developing state-of-the-art technology and content-rich
products that provide fun, fair, and safe betting and gaming
entertainment to customers worldwide.
Find out more at:
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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