William Hill owner 888 announces departure from US with partial sale to Hard Rock Digital
After a strategic review of its business in America, William Hill owner 888 has announced it is pulling out of the US consumer gambling market.
The firm, which also owns 888 and Mr Green, has agreed to sell selected assets to Hard Rock Digital and expects to have fully exited the US market by October 2024.
It was tight-lipped about which specific assets were involved in the sale to Hard Rock Digital, the gaming and sport betting arm of Hard Rock International, best known for its entertainment venues, restaurants and hotels.
Playtech, a large ‘white label’ gambling technology business that had a £700m bid for 888 rejected by the UK-listed bookmaker at the end of last year, owns a minority stake in Hard Rock Digital.
888 expects the sale and overall departure from the US to boost its adjusted earnings before interest, tax, deprecation and amortisation (EBITDA) to the tune of £25m from next year. Of these savings, the company has committed to reinvest roughly £10m into growth and “value creation initiatives.”
The group said it factored the impact of the withdrawal into the financial targets for the year that it announced earlier this week.
The company used those same results, in which it posted “disappointing” earnings down 25 per cent, to announce a major brand overhaul that would see it change its name to Evoke plc.
William Hill’s owner will put the name change to shareholders at its AGM this year.
The rebrand formed part of a wider “value creation plan” at the business that is being spearheaded by its new boss, Per Widerström. The plan, referred to by Widerström as a “reset” also pledged to deliver £30m of cost savings a year as it looks to focus on the core markets that make up 80 per cent of its revenue: Spain, Italy, Denmark and the UK
The Gibraltar-based firm’s exit of the US looks to be the first major move in its attempt to achieve those savings and follows a short review programme that was only announced in March.
Shares in 888 fell from 89p to 87p when the market opened.