A cessation of services in the Dutch online market, as well as the impact of additional safety measures, is expected to be offset by growth across a selection of European markets for 888 during the first half of the year.
Delivering a brief trading update and outlook for the six months ending June 30, 2022, the gambling group also informed that it expects to close its acquisition of the non-US business of William Hill on July 1, 2022, after shareholders last month gave the transaction the green-light.
In September 2021, 888 entered into a £2.2bn deal with Caesars to buy the non-US business of William Hill, however, a revised value of between £1.95bn and £2.05bn, a potential £250m drop, was agreed in April due to tough economic conditions, as well as ongoing regulatory and compliance developments.
888 anticipated reporting revenue for the aforementioned half-year time frame of between £330m-£335m, which, at the top end of the estimate, would represent a 22.39 per cent decrease from 2021’s £431.7m.
William Hill revenue for the 26 week period ending June 26, 2022, is currently expected to close at £620m-630m. This, said 888, reflects a re-opening of retail operations but is offset by increased safer gambling measures in the UK’s digital marketplace, in addition to certain market adjustments or exits within international online ecosystems, such as the Netherlands.
Furthermore, the group also suggests that capital expenditure for the full-year will be slightly higher than 2021 for both companies.
In addition, an update for the twelve months ending February 28, 2022, was also issued, with 888 and the non-US business of William Hill seeing revenue reach £690m and £1.36m with adjusted EBITDA finishing up at £109m and £238m, respectively.
It is added that the performances are down to the positive impact of retail reopening and strong performances across a number of regulated countries, with drawbacks coming in the form of those previously outlined above.
