888 Share Discussion Threads

[frankiethecabbie] 25/8/2016 12:09

Rank runs numbers on 888 after failure of William Hill bidRobert LeaAugust 24 2016, 12:01am, The TimesMecca reported a 14 per cent increase in operating profits in its 90 bingo halls to £33 millionRICHARD POHLE/TIMES PHOTOGRAPHERShareSaveRank Group is not ruling out a £1.6 billion merger with 888 Holdings after the pair's failure to pull off an ambitious three-way deal with William Hill.William Hill, the high street bookmaker that has struggled to get a credible presence in online casinos, rebuffed a £3.4 billion joint takeover approach by Rank and 888 last week.Henry Birch, Rank's chief executive, declined to damp down speculation yesterday that the next move could be a merger of his company, valued on the stock market at £850 million, with 888, valued at £775 million.He said the rationale for pursuing the audacious three-way deal had been manifold: the present round of consolidation in the industry in which Paddy Power merged with Betfair and Ladbrokes did a deal with Gala Coral; the synergies of selling multiple products to an enlarged customer audience; the power of scale when marketing budgets needs to be large; and the notion that a Rank-888-William Hill deal would set a new paradigm in the industry."If you started with a blank sheet of paper you would want to create a company with retail and digital offerings across sports betting, casino, bingo and poker," Mr Birch said. He indicated that a deal between Rank and 888 would not be illogical. "We are in 'no comment' territory here but, yes, the same rationale applies," he said.Yesterday Rank reported annual results that were good in parts and said that it remained comfortable with its strategy before the William Hill bid: organic growth and the development of new channels by which to part customers from their cash.Rank once had a proud history in the film industry and retains its gongman logo. Nowadays, notwithstanding a Spanish division, it is essentially a two-legged British company based on Grosvenor casinos and Mecca bingo halls and it is taking those brands online.Grosvenor Casinos' move online brought a 70 per cent increase in digital operating profits to £5.3 million, but that gain was wiped out by a slowdown in business in its 60 clubs in the final weeks of its financial year on June 30, where operating profits in the actual casinos slid 4 per cent to £60 million.In its 90 bingo halls, Mecca reported a 14 per cent increase in operating profits to £33 million but its digital offering of rolling 90-ball online bingo games fell 40 per cent to £8.6 million.Group pre-tax profits came in 4 per cent higher at £77 million on revenues 2 per cent higher at £753 million.

[loganair] 25/8/2016 12:09

These two headlines came out a few days ago:

Rank Group Looking For Acquisitions After Withdrawing From William Hill Race.

And

Rank and 888 pull out of the William Hill takeover, but Rank reveals it is actively seeking takeover targets.

[frankiethecabbie] 25/8/2016 12:03

Rank seem to want it more

[fitton] 25/8/2016 11:28

Interesting news piece but I don't think that's going anywhere fast.The current combined value of the two companies is well over £1.6b.888 needs to be valued at £1.1b on its own.The results will give a very good indication as to current possible value.

[nigelmoat] 25/8/2016 10:03

Interim results due here next Wednesday - expecting some good numbers.

[tongosti] 20/8/2016 20:46

Assuming the major market averages do not sink from here, 888 should likely go up. Both fundamentals + price action seem to point upwards as the path of least resistance.

[shayadfn] 20/8/2016 16:04

Perhaps GVC ought to have a look at 888.

[trentendboy] 19/8/2016 13:57

All this publicity globally has well and truly highlighted that 888 is in play and looking for a deal/partners.

They will be involved in some sort of consolidation at some point. Generally good for the share price They are too small to really buy up others.

A move towards £3 makes sense.

[ricardothebrave] 19/8/2016 13:54

Short term good news now the deal is off the table. share price should continue to rise on the back of good results. Longer term 888 could see market share squeezed by the bigger players, takeover at a good price (£3+) would be my preference.

[tines] 19/8/2016 13:38

Hope next week there's good news on the other side of the pond.
hxxp://www.igamingbusiness.com/news/bad-actor-pokerstars-faces-five-year-california-ban

[loganair] 19/8/2016 12:20

It would have cost 888 £miilons to have made the bid attempt and taken up management time which could have been better spent else where.

[fitton] 19/8/2016 09:39

Amazing more investors are not coming in here this morning.2 failed deals,share price much lower since results.How much longer can 888 stay independent.I think a £3 take out is very possible.

[tongosti] 19/8/2016 09:13

Good seeing 888 walked out of the WH stupid deal. Should help the SP

[nigelmoat] 18/8/2016 16:22

Brilliant news in the Rns. Look forward to some good results on the 31st August now.

[alex1621] 17/8/2016 16:54

The William Hill purchase is a mistake in my view, it would be better if it where the other way around, as acquirers tend to overpay for their targets. The positive is that the major owners will only sell 888 at a solid premium.

[frankiethecabbie] 17/8/2016 12:30

https://www.google.co.uk/amp/www.standard.co.uk/business/market-report-william-hill-merger-cloud-puts-short-seller-on-a-winner-a3322571.html%3famp

[frankiethecabbie] 17/8/2016 10:34

MMs did the same with GVC last month , dropped it right down and forced panic selling , including me then it went on a 100 point steady climb. 888 major shareholder and CEO sound like they want this deal and I am sure Mattingley will be involved with it all , so I can only see a positive outcome .

[trentendboy] 17/8/2016 10:13

Price falls look overdone given that 888 is really in the window - either for selling or for buying.

Either way, 888 will not be independent for very long.

Does it mean more profit buying at this price? I think the price is looking attractive now for a quick 10% gain (if not more).

[oohrogerpalmer] 17/8/2016 09:37

I sold out when proposed deal was announced because I just couldn't see it working.
Hope to buy back in at 1.75 - 1.80 level.
Who knows where it could end up but the future is still bright.

[frankiethecabbie] 16/8/2016 13:33

Also I wouldn't be surprised to see a formal offer for Hills as their price drifts down , then the board can only recommend.

[ricardothebrave] 16/8/2016 13:27

Ooh might just time a dip then rise.... Decisions, decisions....

[frankiethecabbie] 16/8/2016 13:21

Results are out in two weeks and I would imagine they are ahead of market expectations