The market responded positively to 888 Holdings Plc’s impressive financial results and Q1 2023 trading update, as the company’s share price soared by 18% today. Investors and stakeholders alike have been encouraged by the solid growth trajectory, strategic focus, and strong liquidity position reflected in the report. The company’s robust performance and commitment to building sustainable revenues have instilled confidence in its ability to navigate the competitive betting and gaming landscape. As a result, the surge in share price demonstrates the market’s optimistic outlook for 888 Holdings Plc and its potential to continue delivering value to its shareholders in the future.
Lord Mendelsohn, Executive Chair of 888, highlighted the transformative effect of the combination with William Hill, creating a leading betting and gaming business. He emphasized the importance of enhancing player protection standards and proactive risk management, in light of recent compliance issues in the Middle East. The company has made progress in integration, upgrading its synergy target from £100m to £150m, and remains confident in achieving higher profitability and its 2025 targets through strategic priorities like integration, market focus, and deleveraging.
The financial experts at MoneyRants.com delve into the company’s recently released FY2022 results and Q1 2023 trading update, shedding light on its financial performance, growth strategy, and ongoing plans to enhance its competitive edge
Summary of 888 Holdings Plc FY2022 Results and Q1 2023 Trading Update:
- FY22 pro forma revenue of £1.85 billion and Adjusted EBITDA of £311 million, both in line with expectations.
- Q1 2023 revenue of £446 million, with the outlook for Adjusted EBITDA unchanged and expected to be in line with market expectations.
- Group revenue in FY22 increased by 74% to £1,238.8 million, and Adjusted EBITDA increased by 82% to £217.9 million.
- Q1 2023 pro forma revenue decreased by 5% year-over-year, but strong performance in retail was observed.
- As of March 31, 2023, the company has £170 million in cash (net of customer balances) and undrawn committed facilities of £150 million, providing total liquidity of over £320 million.
- The company is progressing with its search for a new CEO, with Lord Mendelsohn acting as interim Executive Chair.
- The internal investigation into shortfalls in best practices related to Middle East VIP customers has concluded, and the Board expects to recover 40-50% of revenue from the cohort, resulting in a £25-30 million revenue headwind for FY23.
- No further expected impact on the company’s UK operations or revenue expectations from the settlement between the Gambling Commission and William Hill.
Overall, 888 Holdings Plc reported strong financial results for FY22 and Q1 2023, in line with market expectations. The company is focused on building sustainable revenues and expects its FY23 Adjusted EBITDA to be significantly higher year on year, with an adjusted EBITDA margin of at least 20%.