The six-month period to 30 June marked the second half-year since 888 acquired William Hill’s non-US assets for £1.95bn in a deal that was completed on 1 July last year. The integration of the business took place throughout H2 of 2022. Despite some challenges, including the departure of CEO Itai Pazner and failings in AML and KYC processes, 888 has reached a settlement with the Gibraltar regulator. Industry veteran Per Widerström has been appointed as 888’s new CEO. However, uncertainty remains over FS Gaming, an investment vehicle backed by former Entain CEO Kenny Alexander that made a bid to take charge of 888. 888’s board has concluded that the appointments proposed by FS Gaming have no reasonable prospect of being approved.
In terms of financial performance, 888’s H1 pro-forma revenue showed a decline compared to the previous year. However, the integration of legacy William Hill assets progressed faster than expected, allowing 888 to achieve the full £150.0m synergies from the acquisition a year earlier than planned. While online revenue in the UK and Ireland decreased, the retail segment performed well, with a 6.0% growth in pro-forma revenue. Internationally, revenue fell due to regulatory and compliance changes, although there was double-digit growth in Italy and Spain and an 11% increase in growth markets.
Despite the drop in group revenue, 888 expects to meet its full-year expectations and anticipates a low- to mid-single digit decline on a pro forma basis. The pace of recovery in the Middle East has been slower than expected, impacting the overall performance. As a result of the acquisition of William Hill, 888’s net debt reduced to £1.66bn. Finance costs increased due to the servicing of debt, resulting in a net loss for the period. However, Lord Mendelsohn, executive chair of 888, remains optimistic about the strategic progress made and the higher profit margins achieved.
