888 Confirms FY 2023 Results, Expresses Optimism about 2024

Gambling group 888 has posted its FY 2023 results, highlighting its performance in the year ended December 31. The figures confirm some of the figures first announced in January.

In 2023, 888 recorded revenue of £1.71 billion ($2.16 billion) – a figure that was affected by the company’s dotcom exits, safer gambling-related changes in the UK and overall reorientation toward sustainability. Because of these factors, the company reported an 8% pro-forma decline in revenue.

In the meantime, revenue increased by 38% year-on-year, underpinned by the company’s acquisition of William Hill.

Adjusted EBITDA for the period stood at £308.3 million ($389.5 million), an increase of 41% year-on-year. On a pro-forma basis, Adjusted EBITDA experienced a slight decline of 1%. Adjusted EBITDA Margin, on the other hand, stood at 18%.

888 explained that the focus on higher return marketing spend more than offset the impact of dotcom market changes.

The company reported £128 million ($161.7 million) in cash as of December 31, together with an undrawn RCF of £150 million ($189.5 million). Net debt fell to £1.71 million ($2.2 million), translating into an adjusted net debt/EBITDA ratio of 5.6x.

888 added that it expects Q1 2024 revenue in the range of £420-430 million ($530.7-$543.3 million). The company noted that it is optimistic about its FY 2024 revenue and Adjusted EBITDA results.

888 Continues to Gain Traction

In the meantime, the company provided an update on its latest achievements, including the recent appointment of Per Widerström as CEO. The company added that its operating model reset further optimized its business, delivering £30 million ($37.9 million) of additional annual cost savings.

The company furthermore initiated a review of its business, exploring alternative options, including a sale of its US-facing B2C business.

Most importantly, 888 proposed rebranding the group to evoke. The group believes that the new name would better reflect its multi-brand operating model and long-term vision. The measure is subject to shareholder approval at the upcoming Annual General Meeting.

888 Is Optimistic about Its VCP

The VCP is set to drive high equity returns with strong execution enhanced by reducing leverage. It includes bold medium-term targets to deliver high returns on equity from sustainable profitable growth. The company targets sustainable revenue growth of 5-9% per year, as well as improved profitability and efficiency through operating leverage.

In addition, 888 seeks to deleverage through disciplined capital allocations and reach leverage of below 3.5x by the end of 2026.

Widerström released a statement on the VCP, saying that the announcement marks an “exciting new dawn” for the business.

I firmly believe that the Group now has all the key ingredients for long-term success: leading positions in growing markets with high and rising barriers to entry; powerful proprietary technology; a top-class management team; and some of the strongest betting and gaming brands in the world.

Per Widerström, CEO, 888

Widerström concluded that 888 is in a good spot since it has the team and capabilities to deliver consistent long-term success. He expressed his confidence in the plan’s ability to deliver sustainable growth.