888 Holdings to launch updated strategy at CMD event

Bookmaker 888 Holdings will launch an updated strategy for "sustainable value creation" amid 'more challenging' trading at its Capital Markets Day event on Tuesday.

888 said its plan was focussed on delivering shareholder returns, driven by "rapid deleveraging" and improved profit margins, supported by "accelerated and increased cost synergies".

The FTSE 250-listed firm will now target revenues of more than £2.0bn in 2025, as well as an adjusted underlying earnings margin of more than 23%, an adjusted net debt/EBITDA ratio of less than 3.5x, and adjusted earnings per share of at least 35.0p.

888 will also look to increase its pre-tax cost synergy target to approximately £150.0m, previously at least £100.0m, of which roughly £34.0m was expected to be capital expenditure-related synergies, as well as an acceleration of delivery, with around £87.0m in operating cost synergies expected to be achieved in 2023.

On the other hand, 888 did caution that its operating environment had become "more challenging" of late, as global macroeconomic conditions shift and key countries in which it operates face increasingly high inflation.

It also warned that it was "more exposed" to the effect of higher interest rates given its current levels of debt and revealed that overall market growth rates across its key online markets had moderated.

"888's updated strategic framework seeks to build on its fundamental strengths and address these challenges through swift actions and a clear plan, enabling the group to realise its strong potential," said the firm.

As of 0815 GMT, 888 shares were down 0.28% at 102.42p.

Reporting by Iain Gilbert at Sharecast.com