- 2022 sales fall 3% in line with expectations
- Full year EBITDA guidance reiterated
- Focus on delivering cost synergies and deleveraging
Betting and gaming company 888 Holdings (888) said fourth quarter and full year sales were down 3% year-on-year, in line with management expectations.
The company also announced the departure of finance chief Yariv Dafna, who will leave after the publication of the full-year results in late March. The shares fell 4% to 90p and are down 66% over the last year.
For ease of comparison, the numbers reflect the acquisition of William Hill’s international business which completed on 1 July and exclude the 888 Bingo business which was sold on 7 July 2022.
HOW DID THE BUSINESS PEFORM?
Online sales, which represent over two thirds of total revenue, saw a 5% decline year-on-year to £1.33 billion as ‘strong performances’ from several regulated countries was offset by the impact from enhanced ‘safe-play’ measures in the UK and the closure of its operations in the Netherlands.
Nevertheless, strong comparatives during lockdown meant online sales outside the UK and the Netherlands fell 4%.
The retail business comprising the William Hill and Mr. Green brands grew 54% to £519 million, reflecting a full-year of trading against the partial Covid-related closures of the prior year.
The World Cup contributed positively to the fourth quarter as expected with online player days up 22% at William Hill compared to Euro 2021.
The company reiterated full year adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) guidance of between £305 million and £315 million.
OUTLOOK
Chief executive Itai Pazner commented: ‘As we look forward, we remain focused primarily on successful integration, execution and de-leveraging in order to unlock the potential from our enlarged business.’
Trading in the current financial year is expected to see sales fall by a low single digit percentage with an adjusted EBITDA margin of 20%.
The focus will be on continued integration of the William Hill business and delivering cost synergies.
Looking further out, the company hopes to generate ‘at least’ £2 billion of sales in 2025 and achieve an adjusted EBITDA margin of 23%, equivalent to ‘more than’ 35p per share of adjusted earnings.
