888 Share Discussion Threads

[rimau1] 07/9/2021 12:26

This is transformational. 888 will have lined up a buyer for the high street estate IMO and will integrate the online UK and European operations of WMH. Any equity raise would likely be at minimal discount since this deal will be massively earnings enhancing in year 1. Might manage to get this away on debt given free cashflow but we will see. The other key point is that 888 has been held back a little from 25% of revenues being from unregulated markets, with this deal it will likely be much less than 10%. We won the bid because we could justify paying £0.5bn more than private equity because of the operational leverage and economies of scale. Amazing news!

[adamb1978] 07/9/2021 12:05

Share price moving! Need to do some work on the numbers, though obviously need the financing details. I guess there will be a large equity raise

[adamb1978] 07/9/2021 12:04

Now RNS'd.

Presumably 888 arent buying the betting shops, or have someone lined up to take them off their hands?

There must be piles of synergies here given that there's no reason for them to run two platforms. Can have just one and they two separate customer facing divisions.

[deanowls] 07/9/2021 11:32

What did censers get the us bit for?

[shaker44] 07/9/2021 11:09

Well 888 have been chasing wmh for 5 years so know what it's worth to them and how to integrate it.
Do they see it as a poison hill to deter acquisition I wonder?

[hawaly] 07/9/2021 10:50

888 wins William Hill auction



Won with an estimated bid of £2billion.

GLA 😎

[clanger66] 07/9/2021 09:19

Looks like someone is unloading stock. Quite a few large prints going through at 400p. Liquidity across the whole market has been low recently so it's not taking much to push prices around or in this case cap them. The results were not bad, today's deal is positive yet 888 seems stuck. I think this will pass once the overhang has gone. Certainly the likes of Entain are pushing higher.

[izztre] 07/9/2021 08:52

Totally agree. Not sure why the market hasn't seen it in the same way!

[adamb1978] 07/9/2021 08:08

Yep, good to see it launched! Very difficult to estimate the financial impact but the more avenues for growth, the better!

[mip55] 07/9/2021 07:14

888 (LSE: 888), one of the world's leading online betting and gaming companies, is pleased to announce its all-new Sports Illustrated wagering experience, SI Sportsbook, has launched in Colorado. https://www.londonstockexchange.com/news-article/888/si-sportsbook-launches-in-colorado/15125093

[rimau1] 07/9/2021 07:05

And there we have it AdamB! Hello Colorado.

[adamb1978] 06/9/2021 19:51

Thanks Rimau; I hadnt seen that right for SI. To me the partnership makes sense, assuming the SI brand has some resonance with target customers. Effectively white labelling their product using the SI brand would make sense in those circumstances.

I think its a kicker to the valuation though, rather than something fundamental

[rimau1] 06/9/2021 19:42

There are no public available numbers as far as i am aware. SI have an option to buy an additional 5% of the JV for $15m so you can value the future value of the JV crudely at $300m i suppose. Launching in Colorado this year and then up to 10 more states plus Canada in 2022-23. 888 basically pivot its sportsbook onto SI.com and their 30m monthly users. My take is that its a decent partnership but a slow burner. SI is a bit old school. Does the media/platform operator model work well? Not sure. Its going to be a crowded market by the time it gains traction so the jury is out which is probably why the stock price hardly moved when this was announced.

[adamb1978] 06/9/2021 16:38

Has anyone seen any estimates for the SI relationship? I'm not sure how much of a kciker it could be to valuation

[adamb1978] 06/9/2021 14:46

FInally listened to the investormeetcompany call. They guided to mid-teens $ growth, which would be $977m turnover, and they tend to guide conservatively too. My guess is that they'll end up closer to $1bn.

There was also a lot of talk about the Sports Illustrated arrangement, which is launching next month. Difficult to know how much upside that provides over the coming years though...

[its the oxman] 04/9/2021 20:53

Cheers Adam, very useful numbers. Surely decent upside from here.

[adamb1978] 04/9/2021 16:22

Setting aside the WH acquisition, looking at the base business before any acquisition:

H1 20 revenue: $379m
H2 20 revenue: $471m
H1 21 revenue: $528m

H1 20 adj EPS: 12.2c
H2 20 adj EPS: 15.1c
H1 21 adj EPS: 18.3c

And from the interims: "Revenues throughout July and August increased by mid-single digit percentage relative to the prior year period....the Board remains mindful of the tougher comparables in the fourth quarter...the Board is confident that revenues and Adjusted EBITDA in the full year will be slightly ahead of its prior expectations"

Market forecasts from what I can see are revenues of $970m and EPS of 27.7 cents. So at a revenue level, this would need $442m, so a few % down on last year, despite the first two months of that period being ahead.

At an EPS level, even if H2 this year was = H2 last year, then you'd end up with 33.4 cents, which is around 24p. On a 18x PE, which is around the level its historically traded, gives you a 432p share price. If H2 this year = H1 this year, then EPS is around 26p. At 18x, this gets you to 468p. Obviously we'd be looking at something closer to 500p if H2 grows, as the first couple months of the period seem to have.

Market forecasts really seem to be a bit behind events...or am I missing something?

Edit: and these figures are before an acquisition of the WH business, which should bring piles of synergies.

Adam

[adamb1978] 04/9/2021 16:03

Presumably 888 is only interested in WH's online business rather than the betting shops which are also on the block too? Price sounds like it could be £1.5bn - £2bn for the whole thing...would be interested to know how much the online business is

[doctor888] 03/9/2021 23:06

888 vs Apollo for William Hill remains

[makinbuks] 02/9/2021 18:04

Quick summary of this afternoons investor presentation on H1:

US huge opportunity, very positive on Sports Illustrated partnership and platform. Now these building blocks are in place we will realise potential

Canada, Germany and Netherlands will also grow from investment following regulation

UK (42% of Revenue) expected to publish White Paper on new regulatory framework in December and taking effect in 2022, timing dependent on amount of legislation required

Guided higher on Revenue (high single digit growth changed to mid teens)and EBIT

[doctor888] 02/9/2021 17:58

I am flummoxed by the drop too - I thought I got a deal adding at 413p but, in retrospect, I should have waited! Listening to the presentation... Record revenues over 3/6/12 months and record numbers from the Euros. Increasing percentage of revenues are from regulated markets every year since 2018 (now 75%). So many positive drivers: the reopening of sports, SI and venture into the US. I don't see how adding the William Hill shops will increase profitability but perhaps I am missing something. In any case, how would the purchase be funded? Not keen on extra debt or share dilution.

[adamb1978] 02/9/2021 14:20

Shouldn't be a read across from cmcx surely?

[chard1980] 02/9/2021 13:02

Maybe some know the Hills result?

[hawaly] 02/9/2021 12:57

This may be a read across from CMCX - currently down > 28%
IG down 9%
Plus 500 down 4%

GLA 😎

[ddubzy] 02/9/2021 12:05

Only thing I can see is broker upgrade with a BUY, 495p target!