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:
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888 Holdings Plc
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+44(0) 800 029 3050
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Per Widerström, CEO
Sean Wilkins, CFO
Vaughan Lewis, Chief Strategy
Officer
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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