888 Holdings Reevaluates US Presence Amidst Intense Competition and Profitability Concerns
A worldwide gaming and wagering powerhouse, 888 Holdings, is scrutinizing its American ventures. Amidst intense rivalry, substantial operational expenditures, and underwhelming profitability in the US sector, the firm is pondering various strategies. These encompass divesting portions or the entirety of its US consumer-directed business, potentially encompassing names like William Hill, 888, and Mr Green. They’re even amenable to a comprehensive and calculated retreat from the demanding US landscape.
Furthering the restructuring, 888 is severing its relationship with Authentic Brands Group, terminating their exclusive agreement to utilize the renowned Sports Illustrated (SI) trademark for digital wagering. This signifies bidding farewell to their SI Sportsbook and SI Casino products across multiple states. While this action carries a $50 million expense (distributed over several years), it’s projected to conserve 888 a considerable sum in yearly operational costs commencing in 2024.
The Chief Executive Officer of 888, Per Widerström, has been transparent about his goal of ensuring the company is well-positioned for robust expansion in the years to come. He acknowledged the fierce rivalry in the American market, stating that significant investment is crucial for profitability.
He emphasized the triumph of their collaboration with Authentic, which has enhanced the SI brand’s attractiveness to consumers. This is apparent in the unprecedented performance of SI Casino across multiple months. Nevertheless, despite this achievement, 888 deems it improbable to attain the necessary scale in the US market for profitable outcomes within a practical timeframe.
Consequently, they are expediting their strategic assessment of US business-to-consumer (B2C) operations. Widerström anticipates presenting an update on the company’s wider strategies to stakeholders sometime in March.
Although there is no established schedule for this evaluation and the result remains unclear, 888 has affirmed that existing US business-to-business (B2B) agreements will not be impacted by this declaration.
It’s noteworthy that 888’s share value experienced a decline in January 2024, plummeting 20% after their financial disclosures for the three and twelve months concluding in December 2023. Despite these obstacles, 888 remains dedicated to formulating a distinct strategic roadmap and will unveil new mid-term financial objectives in March 2024.