888 posts revenue of £690m as completion of William Hill deal edges closer
FTSE 250 operator delivers final trading update as multi-billion-pound transaction takes shape with bond offering
888 has published its final trading update ahead of the completion of its £2bn acquisition of William Hill International, revealing revenue of £690m for the 12 months ending 28 February 2022.
The London-listed operator confirmed adjusted EBITDA of £109m, with an expectation to report revenue of between £330m-£335m for the first half of 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,” the operator said in an accompanying statement.
888 is expected to complete the acquisition of William Hill International from Caesars Entertainment on 1 July, a deal which 888 CEO Itai Pazner has previously suggested could be a “transformational” one for the igaming and sports betting operator.
A crucial aspect of this transaction is William Hill’s retail bookmaking arm, which has served as the bedrock of its revenue generation over its 88-year history.
In tandem with its trading update, 888 has confirmed William Hill International generated revenue of £1.3bn and adjusted EBITDA of £238m for the 12 months ending 22 February 2022.
Hills’ revenue for the first half of 2022 is currently expected to be between £620m and £630m, figures buoyed by the reopening of its retail operations following the Covid-19 pandemic.
However, the firm has said this growth has been offset by the impact of increased safer gambling measures on its UK online portfolio, and market adjustments arising from exits from online markets including the Netherlands.
Elsewhere, 888 has further readied the groundwork for the Hills deal by commencing an offering of credit notes totalling more than £1bn, inclusive of US dollar denominated loans maturing in 2028 and euro-denominated notes due in 2027 and 2028 respectively.
The operator has also confirmed it will enter into new credit arrangements comprising a £401m euro-denominated loan facility and a £358m British pound denominated loan facility, with both expected to mature in 2028.
In addition, 888 has signed a deal to secure a £150m multicurrency revolving credit facility.
888 has said that these funds, along with its £159m share placement, which completed in April, will be used to make up some of the £2bn acquisition costs on the deal as well as pay off company debts.