888 Holdings plc (LON:888), one of the world’s leading online betting and gaming companies, today announced a current trading update and provides further detail on its financial performance for the twelve months ended February 2022.
Financial performance for the twelve months to February 2022
In connection with its proposed intention to market senior secured indebtedness through 888 Acquisitions Limited, a wholly-owned subsidiary of the Company, announced separately today, the Group has issued updated pro forma financial information for the twelve months to February 2022 as part of the offering memorandum.
888 generated revenue of £690 million and Adjusted EBITDA of £109 million for the twelve months ending 28 February 2022. The international (non-US) business of William Hill generated revenue of £1,3661 million and Adjusted EBITDA of £2381 million for the 52 weeks ending 22 February 2022.
The performance of both businesses largely reflects a continuation of the trends outlined in the Prospectus dated 29 April 2022, with the positive impact of retail reopening and strong performances across a number of regulated countries being offset by the closure of the Netherlands and the impact of additional safer gambling measures within the UK Online segments of both businesses.
Current trading and outlook
888 Holdings currently expects to report revenue of between £330-335 million for the six months ended 30 June 2022. 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.
William Hill revenue for the 26 weeks ended 28 June 2022 is currently expected to be between £620-630 million. This performance reflects the re-opening of retail operations, offset by the impact of increased safer gambling measures in UK Online, and certain market adjustments or exits within International Online such as the Netherlands.
Capex for the year 2022 is expected to be slightly higher than 2021 for both 888 and William Hill.
The board has set a goal of achieving a pro forma net leverage ratio of at or below 3.0x in the medium term.
The Group currently expects to close the transaction on 1 July 2022.
1 Adjusted based on the performance of the business in July 2021 – February 2022; actual Retail Revenue and Adjusted EBITDA figures were £415m and £46m respectively.