888 Holdings PLC on Tuesday reported a widened annual loss but rising revenue and Ebitda, and unveiled its new ‘Value Creation Plan’.
The stock was up 7.2% at 89.80 pence on Tuesday morning in London.
The Gibraltar-based sports betting and gambling company, whose brands include 888casino and William Hill, reported a £121.3 million pretax loss for 2023. It made a £115.7 million loss in 2022.
Earnings per share dropped 55% to 12.6p from 28.3p.
Revenue surged 38% to £1.71 billion from £1.24 billion, which 888 said reflected consolidating William Hill revenue from the second half of 2022.
888 added that this included a ‘higher quality mix driven by proactive mix shift away from dotcom markets and customer mix changes in the UK as a result of additional safer gambling measures, alongside the change in the group’s marketing approach to focus more on sustainable revenue and profitability’.
Earnings before interest, tax, depreciation and amortisation more than doubled to £261.3 million from £115.5 million. Adjusted Ebitda rose 41% to £308.3 million from £217.9 million.
The aforesaid depreciation & amortisation, however, surged 90% to £228.3 million from £120.3 million.
888 did not recommend any dividends for the period, unchanged from 2022.
For this year, 888 proclaimed a ‘positive outlook’ for revenue in line with its medium term targets, ‘with consistent growth in active players driving confidence in strong revenue growth online in both the UK and International segments’.
888 said trading so far is in line with its previously announced target of about £340 million in adjusted Ebitda for 2024. For the first quarter, meanwhile, it expects revenue of between £420 million and £430 million.
888 also announced the new Value Creation Plan for the next few years, which it called a ‘clear strategy for success’.
The ‘VCP’ includes new appointments to strengthen the executive team; an ‘operating model reset’ aiming to deliver additional cost savings of about £30 million annually; and a ‘new strategic framework...with a clear vision of what success looks like and the strategy to get there’.
888 said it expects the VCP to drive ‘profitable and sustainable’ revenue growth of 5% to 9% annually.
‘It is incredibly exciting to announce our Value Creation Plan, our strategy for success, our new financial targets, and our new corporate identity,’ commented Chief Executive Officer Per Widerstrom. ‘Today marks the beginning of an exciting new dawn for this business.’
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