888 CEO Per Widerström has revealed plans to rename the group evoke plc, alongside a value creation plan forecast to generate revenue growth of up to nine per cent per year.
Widerström said 888 will vote on the new corporate brand at its upcoming AGM and will announce more details in “due course.”
However, he said the regulatory and compliance changes made in recent years in key regulated markets and dotcom markets have “changed the mix of our business,” meaning the combined business today is “fundamentally different to the previous previous individual businesses that made up the combination.”
Widerström said the new identity would create an identity that “better reflects the combined group, our mission and values, alongside the clear strategic framework and value creation plan we are announcing today, will better support the business in reaching its significant potential.”
Key pillars in the value creation plan include driving profitable and sustainable revenue growth, with 888 targeting growth of between five and nine per cent per year.
It has also targeted an adjusted EBITDA margin expansion of 100 basis points per year.
Being “highly disciplined” with its use of capital is another key aim, Widerström said.
“Our financial leverage is relatively high in the context of our sector, but I firmly believe this will be a significant positive driver of our return on equity and will magnify the returns that we will generate in the coming years. Our business is highly cash generative and we will use this cash wisely to ensure we deliver profitable growth and deleveraging, thereby multiplying our return on equity.”
The group is thirdly looking to improve profitability and efficiency through operating leverage, investigating in insights, artificial intelligence and intelligent automation – all aimed at delivering productivity at a lower cost.
The six strategic initiatives 888 has revealed to help execute the plan include “continuously differentiating our brands from the competition and being relevant to specific customer needs.”
“Unifying our proprietary technology platform while delivering outstanding products that are aligned with our brands and customer needs” is another key principle announced.
888 has also said it will redefine its market archetypes into Core Markets, including the UK, Italy, Spain and Denmark, and Optimise Markets, where the group will “prioritize cash flow generation and value maximization through leveraging our enhanced capabilities and scale.”
Widerström concluded: “We are at the beginning of an exciting new journey. We will build on our strong foundations through a clear strategy and focused plan that will deliver sustainable profitable growth and unlock significant value creation.
“I look forward to updating shareholders and our wider stakeholders on progress against our plans over the coming months and years.”
The announcement came as 888 confirmed its full-year results, with reported revenue up 38 per cent year-on-year to £1.7m up from £1.2m.
Adjusted EBITDA also rose by 41 per cent to £308.3m from £217.9m.
