888 Holdings continues to grow as they prepare for William Hill deal
888 Holdings plc (LSE: 888), a leading online betting and gaming company, recently announced its financial results for the year ended December 31, 2021.
In detail, the group’s revenue increased 15% to $980.1 million, with double-digit B2C growth in most of its core and growing markets. Income from regulated and taxed markets represents 74% of total income with growth of 17% in these markets. The company has declared no final dividend, as it prepares for the pending William Hill transaction, with no changes to the group’s dividend policy.
Americas revenue increased 33.7% to $125.6 million. american game sites feature 888 in its listings
The acquisition of William Hill’s non-U.S. assets is expected to close in the second quarter of 2022. The deal would deliver significant scale advantages, as well as building leadership positions in some of its high-priority markets, supported by a portfolio of brands with the introduction of William Hill and Mr Green, an online casino operator, licensed and regulated in the UK.
Revenues from “core” markets (UK, Italy, Spain) increased by 18%, those from “growth” markets increased by 26%, including growth in Canada, Romania and Ireland.
888 also launched 888sport in Germany on a local license, powered by its in-house sports betting platform, and was licensed in Virginia and Ontario. The company launched the World Series of Poker in Pennsylvania and over 870 new casino games in 2021, bringing the current library to around 3,000 games.
The proposed acquisition of William Hill, which will nearly triple the size of the business, is expected to generate returns, including substantial synergies, while the announced sale of its bingo business allows the business to focus more on core growth opportunities.
Led by Itai Pazner, CEO, 888 is one of the world’s leading online betting and gaming companies that develops technologies and products that deliver fair and safe online betting and gaming to customers worldwide. The Group is structured in two lines of business: B2C, under the 888 brands, and B2B, conducted through Dragonfish, which provides partners with a platform to establish an online gaming presence and monetize their own gaming brands. safe and responsible manner.
The company plans to launch in several new markets in 2022, including Ontario, 3-4 additional states with SI Sportsbook, and possibly relaunching in the Netherlands on a locally regulated basis. He also plans to launch poker on a B2B basis in Michigan pending regulatory approval.
In reviewing the CEO’s business, Pazner outlined the framework to deliver long-term growth through a new strategy built around 3 areas, focusing on key markets, investing in sustainable competitive advantage and driving engaging in mergers and acquisitions (M&A).
The main markets are the UK, Italy and Spain, while growth markets are generally regulated or newly regulated markets which have attractive long-term growth potential. Additionally, the nascent US online betting and gaming market presents a significant long-term strategic opportunity for 888, leveraging technology and operational capabilities in partnership with the American Sports Illustrated brand through SI Sportsbook. Finally, the company aims to grow in the long-term investment markets by investing to build market-leading positions, either through mergers and acquisitions or through partnerships and collaborations. Outside of these markets, 888’s global capabilities and multi-jurisdictional licenses enable the company to serve customers in more than 100 additional countries in a compliant, low-risk manner.
Sustainable competitive advantages are based on its core capabilities, such as product and content leadership, world-class brands, and delivering a quality customer experience.
888 has a systematic approach to M&A activity, focusing its efforts on continuing to evaluate a range of potential expansion opportunities, in both established and emerging markets.
The sale of its bingo business for up to $50 million to a division of Broadway Gaming was completed to focus more on its core growth strategy, including expansion into the United States.