29th Nov 2022 11:01
(Alliance News) - 888 Holdings PLC on Tuesday announced a series of new financial targets for 2025, and increases its cost saving measures.
The London, England-based betting and gaming company, which recently acquired the business of William Hill outside the US, is holding a capital markets day in London on Tuesday afternoon.
Ahead of the event, 888 said that it is targeting 2025 revenue of more than GBP2 billion, up from its 2021 revenue of USD980.1 million. 888 began reporting in GBP from its interim results for the first half of 2022.
888 has predicted proforma revenue of GBP1.85 billion for 2022, after revenue in the first nine months of the year totalled GBP1.39 billion.
Supporting its 2025 target, 888 said that the acquisition of William Hill had "given the group stronger positions across its core markets of the UK, Italy, and Spain," and strengthened the groups brand portfolio.
888 said it will target an adjusted earnings before interest, tax, depreciation, and amortization margin above 23% - from an Ebitda margin of 16% for the third quarter of 2022 - as it seeks to reach adjusted earnings per share of GBP35 pence by 2025. Adjusted EPS in 2021 was 27.3 US cents.
888 said it expects an adjusted Ebitda margin of 20% for 2023.
888 said it will target GBP150 million in pre-tax cost synergy - meaning cost cuts from merged operations - up by GBP50 million since its last announcement. 888 will speed up the synergies, intending to save GBP87 million in operating costs in 2023 from GBP54 million in its previous announcement.
Chief Executive Officer Itai Pazner said: "As a newly combined business we have significant scope for improving our operating model and delivering efficiencies. Over the next two years we plan to fully integrate our business - creating a bigger, stronger and better organisation with higher profit margins."
888 shares were flat at 102.70p on Monday morning in London.
By Harvey Dorset; [email protected]
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