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Tag: 888

  • 888 Initiates US B2C Strategic Review with Sale or Exit as Outcome

    888 Initiates US B2C Strategic Review with Sale or Exit as Outcome

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    British sportsbook and gaming company, 888 Holdings, has announced the termination of its partnership with Authentic Brands Group, through which it had licensed the Sports Illustrated (SI) brand for its casino and sportsbook efforts.

    At the same time, the leading betting and gaming company with globally recognized brands like 888, William Hill, and Mr Green broke the news that it would be assessing options to either exit or sell its direct-to-consumer operations based in the US.

    The decision comes in the context of the low margins and strong competition recorded by the business-to-consumer division, and at a time when FanDuel and DraftKings continue to cumulatively dominate more than 60% of the market.

    The London-listed company could not confirm a timetable for when the review would be completed. At the same time, they could not give assurances regarding what the outcome of the review might be, other than that the US business-to-business operations would remain unaltered.

    The Current Structure Will Not Optimize Returns

    888 explained that the “current structure” would not be able to optimize returns, thus deciding to initiate the strategic review. 

    Company chief executive officer Per Widerström further spoke about his focus on making sure that the group “is set up to deliver strong value creation in the coming years.”

    He added that, in the US, the intense competition and ongoing need for scale equals a need for massive investment to be profitable.

    Widerström also spoke about their partnership with Authentic which, as he described, “has consistently driven strong demand for the SI brand across both consumer experiences and product offerings.”

    The CEO mentioned several “record-breaking months for SI Casino” which underscored the strength of the Sports Illustrated brand. 

    Nonetheless, despite the recorded successes, the company deems it “unlikely” to be able to achieve the necessary scale in the US market that would lead to “positive returns within an accelerated time frame”.

    According to the terms of the As termination agreement, 888 will pay $25 million in cash. An additional $25 million will be paid between 2027 and 2029. 

    SI-branded business operations will not be interrupted during the strategic review. Shareholders will be updated on their plans in late March. In February, 888 announced the launch of a Control Centre safer gambling tool in Ontario.

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    Melanie Porter

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  • 888 Group Announces Job Cuts in Israel amid Global Restructuring

    888 Group Announces Job Cuts in Israel amid Global Restructuring

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    Online gambling giant 888 Group has confirmed a wave of job cuts in Israel as part of its broader organizational restructuring, impacting dozens of its regional employees. This move follows a similar round of layoffs in the country last January. Such events are rarely a good sign, but 888 should still be able to recapture its momentum and have a successful year.

    The Group Commands a Sizeable Worldwide Presence

    The 888 Group, with a total workforce of 11,000 individuals, including 500 in Israel, is undergoing significant changes in its operational structure. With dozens of job cuts, the company has joined a growing list of high-tech businesses that have reduced their workforce in the country, whether due to regional instabilities or rising macroeconomic pressures.

    An 888 Group spokesperson commented on the layoffs, noting they were part of a broader organizational restructuring. The company aims to advance its long-term strategic plans, better positioning it for enduring success. 888 stated it would ensure the affected personnel would achieve adequate support to adapt to these changing circumstances.

    Unfortunately, some of our positions in Israel have become redundant. We will offer our full support to those colleagues who were affected by the move.

    888 Group statement

    Exactly one year ago, the company went through another significant round of layoffs, reducing its 590 staff by almost 100. 888 again justified the move with an increasingly challenging operational environment, hoping to achieve cost reductions in all the company’s branches. The Group did not comment on whether it planned any additional layoffs.

    The Layoffs Are Another Troubling Sign for 888

    888 Group’s 2021 acquisition of William Hill added significant operational and regulatory complexity to its worldwide operations, necessitating the ongoing restructuring. However, the process has not been kind to the company, as disappointing financial results have damaged investor confidence. These results may indicate an unfortunate trend for the company as 2022 saw another 7% slump.

    Despite ongoing difficulties, 888 maintains a positive outlook, reaffirming its efforts to promote responsible gambling across its retail business as it adapts to shifting regulatory landscapes. While 888 Group seeks to optimize its structure for long-term success, the impact on its workforce reflects the broader trend of companies in the gambling industry adjusting their operations to stay agile and competitive. 

    As 888 Group moves through this restructuring phase, the industry will watch how the operator navigates the challenges posed by recent acquisitions, positioning itself for sustained growth in an increasingly competitive market. Recent high-level leadership shifts should provide fresh perspectives, hopefully reversing the negative trend and allowing 888 to better capitalize on its global presence.

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    Deyan Dimitrov

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