888 Releases Financial Update as William Hill Acquisition Looms

888 Releases Financial Update as William Hill Acquisition Looms

888 has published its final trading update as it approaches the acquisition of William Hill International, a once-mighty gambling behemoth that has been gobbled up by Caesars Entertainment and triple-eights. The company though seems to be in good financial standing with the revenue for the 12 months ending on February 28, 2022, sitting at £690 million ($842 million).

888 Praises William Hill and Own Financial Performance

888 said in the report that its adjusted EBITDA stood at  £109 million ($133 million), with the expected revenue for the first half of 2022 see-sawing between £330 million ($403 million) and £335 million ($409 million). Commenting on the company’s results, the official statement remarked that the Netherlands had posed some challenges, albeit those would be addressed and adapted to.

This result is broadly in line with board expectations, with growth in certain European markets offset by the impact of additional safer gambling measures as well as the temporary exit from the Netherlands.

888 final trading update

This comes at a particularly important time for the company as it is homing in on the William Hill International assets which it will be buying for the sum total of £2 billion ($2.40 billion). The deal is largely seen as an important milestone for the company which its chief executive officer, Itai Pazner, puts a lot of hope on.

William Hill’s sportsbooks across the United Kingdom will add an important revenue to the company, the thinking goes, with 888 expecting to fully capitalize on the land-based and digital segment while adding its own innovative twists.

888 said in the latest financial statement that William Hill International had generated £1.3 billion ($1.59 billion) in revenue, with adjusted EBITDA standing at  £238 million ($290 million). Understandably, a portion of 888’s update focused on talking about the pending acquisition.

Taking on New Credits to Spearhead Growth

William Hill is an important future pivot for 888 as the company has been working on several fronts to make the implementation and immediately derived synergies more worthwhile. Of course, William Hill has been also slowed down by the changing regulatory climate in important markets across Europe.

This has not stopped 888 from offering credit notes to the tune of £1 billion ($1.22 billion). There have been a lot of financial moves behind the scenes, with the company taking on new credit arrangements, including a  £401 million EUR-denominated loan facility and a £358 million GBP-denominated loan facility.

Author: Ian Douglas