888, which has internationally renowned brands including William Hill, 888 and Mr Green, has announced the conclusion of its strategic review of US B2C operations.
As a result of the review, the group has agreed the sale of selected assets to Hard Rock Digital, completion of which is conditional upon, among other items, relevant regulatory approvals.
It is expected that the disposal will be completed in a number of phases, with final completion expected in Q4 2024.
The group has commenced a controlled exit of its remaining US B2C operations, with the intention of fully ceasing operations by the end of 2024, subject to regulatory approvals and process.
The exit of US B2C operations is expected to realise a recurring annualised benefit to adjusted EBITDA of approximately £25m from 2025 onwards. The group intends to reinvest approximately £10m of these savings into growth and value creation initiatives.
The combined net impact of the sale and exit of US B2C were already incorporated into the financial targets that the group announced on March 26.
The group currently expects to incur net one-off cash costs of approximately £40m in relation to the exit of the US, inclusive of the brand licence termination fee already announced, with such payments occurring from 2024 until 2029.
