The latest update on the 888Holdings sale of its Latvian Mr Green and William brands as well as an update on the company’s current situation. (Image by Gerd Altmann from Pixabay)
The owning company for 888Casino, 888Sports, 888Poker, 888 Ladies, William Hill online casino, William Hill high-street betting shops, and Mr Green online casino has just made € 28.3 million selling a portion of its business.
888 Holdings has online casino platforms operating in Latvia under the Lotteries and Gambling Supervisory Inspection regulatory body, a.k.a., the Izložu un Azartspēļu Uzraudzības Inspekcija. However, as the company tightened spending and looked to bring its shares up to keep shareholders happy, it meant letting go of its Latvian operations.
Previously month after month of bad news hitting the 888 Holdings brand name sank its share price and saw the exit of its CEO. Yet, it seems the company has turned a corner getting into gambling entertainment for the right reasons – the business side of things.
And this latest news releases the company of pressures overseas so it can focus on its larger markets. Namely the Ontario, US, and UK online casino and sports betting industries.
Find out more about 888 Brands: The best place to look for William Hill, Mr Green and 888Casino bonus deals and reviews of each platform is via the no deposit bonus registration guide.
Paf Consulting Buys 888 Holdings Brand Names
The company behind the purchase from 888 Holdings is Paf Consulting. And the deal is for Mr Green and William Hill online casinos and sportsbooks operating in Latvia.
To begin with, 888 Holdings will receive a cash payment of € 24 million. Following this, another € 4.3 million is due in 2024. I presume this part of the deal comes with conditions. For example, the payment is due as long as everything goes as expected for Paf Consulting and both websites’ profitability remains stable. In total, this comes to € 28.3 million.
If you would like to check out the latest gambling share prices update, the report currently shows that 888Casino is trading at 70.30 GBX. However, today, its stocks are up to a whopping 117.80 GBX.
Lord Mendelsohn, executive chair of 888 said: “This sale generates cash proceeds from a non-core market to support our deleveraging plans, as well as enabling reinvestment into our core and growth markets.”
What is Next For 888 Holdings?
Currently, the company is climbing back into a healthy financial situation. Its profits were recently affected by a number of controversies. Namely, it’s a huge £ 19.2 million fine by the UK Gambling Commission for several social responsibilities and anti-money laundering activities.
There was also a shutdown of its middle eastern operations providing high rollers with gambling services. With its stock price down into the 50 to 60 GBX region, investors were not happy, to say the least. Yet, the company remained with a firm ‘Buy’ recommendation across the stock markets. On top of this, financial figures were not great, but bearing in mind they took the pandemic into consideration, they were not actually that bad.
In the 888 Holdings 2022 Revenue Report issued in April this year, the company reported net losses of £120 million. This was mainly because, after its reverse takeover of William from Caesars Entertainment PLC, 888 Holding now had a string of William Hill land-based betting venues that were closed due to lockdown restrictions in the UK.
On the positive side, the company reported +82% Adjusted EBITDA Year-on-Year to £ 217.9 million and a +74% Revenue Rise Year-on-Year to £ 1.2 billion. All the positive signs that were needed to show a recovery from the negative effects of the pandemic.
Even more encouraging were the Q4 financial results for 2022. This showed an extensive recovery in the land-based sector with a +4.8% increase to £ 131 million. This was enough to bring stock prices back up. And while its online sector was down £ 17.9 million to £ 326 million (-5.5%), this was mainly due to fines and other expenses.
Still a quality brand! The consensus is that 888 Holdings still operates a number of quality online gambling entertainment and high street brands. Hence, it comes as no surprise its stock prices and reputation are recovering fast.
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