TOP NEWS: 888's interim revenue on-track to meet expectations

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888 Holdings PLC on Thursday said it expects interim revenue to come in line with expectations, as the group prepares to close its acquisition William Hill's non-US assets.

The Gibraltar-based online betting and gaming company expects to report revenue of between £330 million to £335 million for the first half of 2022.

888 said the result is ‘broadly in line with board expectations’, with growth in some European markets offset by the effects of additional safer-gambling measures as well as the temporary exit from the Netherlands.

In addition, 888 said William Hill revenue for the 26 weeks to June 28 is currently expected to be between £620 million to £630 million. This performance reflects the re-opening of high-street retail operations, offset by the impact of increased safer gambling measures in UK Online. It expects to complete the deal for William Hill's UK assets on July 1, it added.

For the 12 months ended February 28, 888 generated revenue of £690 million and adjusted earnings before interest, taxes, depreciation and amortisation of £109 million.

The international business of William Hill meanwhile generated revenue of £1.37 billion and adjusted earnings before interest, taxes, depreciation and amortization of £238 million for the 52 weeks ended February 22.

In September 2021, 888 announced that it would acquire William Hill's assets outside of the US for £2.2 billion. However, the acquisition's enterprise value had been revised downwards since to £1.95 billion, and is expected to be completed on Friday next week.

Looking ahead, the company said capital expenditure for 2022 is expected to be slightly higher than 2021 for both 888 and William Hill.

888 also announced Thursday that it intends to market £1.02 billion senior secured indebtedness through 888 Acquisitions Ltd, a wholly-owned subsidiary of the company.

It expects to use the gross proceeds of the offering for the purposes of financing or refinancing the acquisition of William Hill's international business, as well as meet working capital needs.

888 shares were down 2.9% at 170.19 pence each on Thursday morning in London.

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