888 Holdings, a leading online gambling company, recently held its Capital Markets Day (CMD) to present its updated strategy and priorities following the acquisition of the non-US assets of William Hill. The event featured presentations from the executive leadership team, highlighting key growth opportunities, financial targets, and anticipated cost synergies. With a focus on unlocking the benefits of the merger, 888 revealed ambitious financial targets for 2025, including revenue exceeding £2 billion ($2.4 billion), an adjusted EBITDA margin above 23%, and adjusted net debt/EBITDA below 3.5x. Additionally, the company announced an acceleration and increase in expected cost synergies, reinforcing its commitment to creating a stronger and more efficient organization.
Unveiling the Strategic Direction:
During the CMD, 888 CEO Itai Pazner emphasized the company’s approach to maximizing the potential of the 888 and William Hill merger. The strategic direction includes improving the operating model, achieving greater efficiencies, and fully integrating the business over the next two years. The goal is to create a larger and more profitable organization with a customer-centric focus and a portfolio of world-class brands. By capitalizing on complementary offerings and leveraging a scalable, unified proprietary technology stack, 888 aims to drive market share growth in highly attractive betting and gaming markets globally. This customer-led approach and emphasis on product and content leadership will enable the company to set the stage for long-term growth.
Financial Targets and Cost Synergies:
888 revealed its financial targets for 2025, showcasing the company’s aspirations for substantial growth. These targets include revenue exceeding £2 billion, an adjusted EBITDA margin above 23%, and a debt-to-EBITDA ratio of less than 3.5x. Furthermore, the company announced an increase in anticipated cost synergies resulting from the merger, with the pre-tax cost synergy target now reaching approximately £150 million. The delivery of these synergies is also expected to accelerate, with around £87 million in operating cost synergies projected to be achieved in 2023. These targets and increased synergies highlight 888’s commitment to driving operational efficiency and enhancing profitability.
Addressing External Challenges:
While outlining its strategic direction, 888 acknowledged the material external changes that have occurred since the acquisition. The operating environment has become more challenging, and the company’s exposure to the effects of higher interest rates has increased due to its current levels of debt. Additionally, market growth rates in the key online markets where 888 operates have moderated. Despite these challenges, 888 remains focused on its long-term potential. The company believes that building a unified technology platform will create future growth opportunities, leveraging its world-class brands, product and content leadership, and commitment to customer excellence.
888 Holdings’ Capital Markets Day provided insights into the company’s strategic direction and financial targets following its merger with William Hill. The event emphasized the company’s commitment to unlocking the benefits of the combination and maximizing operational efficiency. With ambitious financial targets for 2025 and an increased focus on cost synergies, 888 aims to create a stronger and more profitable organization. By prioritizing a customer-led approach, leveraging its portfolio of world-class brands, and embracing a unified technology platform, 888 is positioning itself for long-term growth and success in the dynamic online gambling market.