888 Holdings Plc surpasses Q1 2024 revenue expectations

Lea Hogg April 22, 2024

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888 Holdings Plc surpasses Q1 2024 revenue expectations

888 Holdings Plc has announced a trading update for Q1 2024. The Group’s revenue of ￡431 million was slightly ahead of the ￡420-430 million guidance range previously outlined at the FY23 Results on 26 March 2024. This represents a 2 percent increase relative to Q4 2023, reflecting a continuation of positive sequential quarter-on-quarter trends.

The Group continues to expect revenues to return to year-on-year growth from Q2 2024 onwards, with full year 2024 revenue growth expected to be consistent with the mid-term target of 5-9 percent annual growth. The UK&I Online division saw continued strong customer engagement with average monthly actives +9 percent. However, revenue was down by 1 percent due to reduced sports revenues, primarily driven by increased customer investment across the Cheltenham Festival relative to the prior year.

Strategic highlights

On 26 March 2024, the Group announced its new strategy, the Value Creation Plan (VCP), and clear medium-term financial targets. These include growing revenue by 5-9 percent per year, improving adjusted EBITDA margin by approximately 100bps per year, and focusing on deleveraging to reach net leverage of 3.5x or below by the end of 2026.

In line with the VCP, the Group is set to launch a new corporate identity – evoke plc – in May 2024, subject to shareholder approval at the AGM on 13 May 2024. This new identity is designed to better reflect the Group’s ‘One Company’ approach.

The Group has also made significant progress in resetting its operating model, with ￡30 million 2024 operating cost savings being reinvested into more profitable marketing to drive growth. The strategic review of the US B2C business concluded on 28 March 2024, with the sale of selected assets and closure of remaining operations expected during 2024 subject to regulatory approvals. This is expected to deliver an ongoing EBITDA improvement of ￡25 million per year from 2025.

Per Widerstr?m, CEO of 888, commented on the Q1 2024 results, stating, “I am pleased to report that Q1 2024 revenue was slightly ahead of our guidance, with strong player volumes converting into improved revenue run rates.” He added that he was delighted to outline the Group’s multi-year value creation plan alongside the full year results in March, and reported a strong quarter of progress against these plans.

New branding

Evoke plc, formerly known as 888 Holdings Plc, is a leading betting and gaming company with internationally renowned brands including William Hill, 888, and Mr Green. The decision to change the name to Evoke plc was made to better reflect the strength of the Group’s multi-brand operating model and its vision and mission to make life more interesting by delighting players with world-class betting and gaming experiences.

The name change is part of a broader strategic transformation led by CEO Per Widerstr?m. The new strategy focuses on core markets, resets its operating model with a focus on automation and artificial intelligence, removes duplication, and delivers more cost savings. The firm will concentrate on key European markets: Denmark, Spain, Italy, and the UK.