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
|
|
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/
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.