888 Q1 results surpass expectations

Revenue was slightly above the gambling group’s guidance.

UK.- London-listed 888 Holdings, soon to be Evoke Plc, has surpassed its guidance for Q1 revenue at £431m. In international markets, online gambling revenues increased by 6 per cent. 

While total revenue was down 1 per cent in UK & Ireland, gaming revenue was up 4 per cent, helping to offset the drop in sports betting revenue. The company said UK online revenue was expected to return to year-on-year growth from Q2. However, revenue from William Hill retail operations was down 7 per cent amid a 2 per cent reduction in shops 

The company said: “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% annual growth.”

Group CEO Per Widerström said: “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. Having navigated various regulatory and compliance changes during the quarter, and with increased marketing investment supported by an exciting product pipeline, we remain confident in a return to growth from Q2 2024.”

Rebranding as Evoke Plc

888 provided an update on its plans to rename to Evoke Plc, expecting rollout to begin next month pending approval at its Annual General Meeting (AGM) on May 13. It added that its new leadership team continues to implement the group’s Value Creation Plan (VCP) with “clear medium-term financial targets, namely to grow revenue by 5-9 per cent per year, improve adjusted EBITDA margin by approximately 100bps per year and focus on deleveraging to reach net leverage of 3.5x or below by the end of 2026.”

So far, the first stage of the VCP involved discontinuation of the US joint venture with Sports Illustrated. It’s expected that the divestment of US wagering assets is expected to be completed this year 2024 and will deliver an ongoing EBITDA improvement of £25 million per year from 2025.

Widerström added: “I was delighted to outline our multi-year value creation plan alongside our full year results in March, and I am pleased to report a strong quarter of progress against these plans. We are moving decisively and at pace to position our company for long-term success, and I look forward to providing further updates about our progress in the coming months.”