888 Holdings, renowned for its internationally acclaimed brands such as William Hill, 888, and Mr Green, has finalized its strategic review of US B2C operations.
Following the review, the group has agreed to divest selected assets to Hard Rock Digital, pending relevant regulatory approvals among other conditions.
The divestment process is anticipated to occur in multiple phases, with final completion slated for Q4 2024. Concurrently, the group has initiated a methodical withdrawal from its remaining US B2C operations, aiming to cease operations entirely by the close of 2024, contingent upon regulatory green lights and procedural requirements.
This exit strategy from US B2C operations is forecasted to yield a recurring annualized benefit of approximately £25 million to adjusted EBITDA from 2025 onwards. Approximately £10 million of these savings are earmarked for reinvestment into growth and value-generating endeavors.
The financial targets announced by the group on March 26 already encompass the cumulative net effects of the sale and exit from US B2C operations.
Regarding the financial implications, the group anticipates incurring net one-off cash costs of around £40 million related to the US exit, inclusive of previously disclosed brand license termination fees. These payments are expected to span from 2024 to 2029.
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