888 Share Discussion Threads

[makinbuks] 14/9/2021 16:59

Gosh what made us so popular today?

[chard1980] 14/9/2021 10:13

Just PEEL at 750p

[its the oxman] 14/9/2021 10:11

Any new broker targets or nos out there?

[finkie] 13/9/2021 15:06

Not happy don’t like retail betting shops 888 have made a big move ahead of regulation etc.

[shaker44] 11/9/2021 02:22

Evidently the NED was confident the share price wouldn't drop after the placing. We shall see.

[base7] 11/9/2021 00:36

great seeing NED adding a decent amount today & I assume their will have been a few Board meetings recently to discuss the acquisition & the prospective synergies will not be lost on him.Interesting to see if our share price holds at current levels & whether the placing will be announced next week & I would expect it to be oversubscribed & IIs may have no choice but to buy shares in the market

[adamb1978] 10/9/2021 17:58

Certainly was a nice purchase, but then again if EPS is going to increase 50%, its pretty compelling

[the white house] 10/9/2021 15:31

100 bags, not too shabby, must have read my post

[the white house] 10/9/2021 15:30

Not interested, Caesar rebrand the lot

[chard1980] 10/9/2021 15:21

Nice little purchase from NED

[adamb1978] 09/9/2021 08:26

So 50% EPS accretion....do we think that this should also trade on the same multiple or higher/lower?

Assuming flat multiple for simplicity, then any reason why we wouldnt expect a 600p share price when this completes?

[farrugia] 09/9/2021 08:12

but won't Caesars Entertainment, Inc retain the WilliamHill name?

[the white house] 09/9/2021 08:11

Added at -13

[the white house] 09/9/2021 08:10

Incorrect. Caesars also bought out the largest sports book estate in the US, numbering 165ish, which was not part of the jv. This huge base gained a long established levels of accounts and Caesars have not and will not shut them down

[the white house] 09/9/2021 08:07

Why quote an incorrect high number?

[base7] 09/9/2021 07:55

888 will certainly get the William Hill Brand, for which they have paid a decent premium.Fantastic deal for Ceasars who acquired the 50% of their JV for peanuts.
The Market should receive the news well & it will be interesting to see when the share issue will take place & at what price.I have a much larger position in Ent but can see that this elevates 8888 to The Big Boys Club & we also have their growing US presence,making as attractive to other potential acquirors.

[adamb1978] 09/9/2021 07:47

"Expected enhancement to 888's adjusted net earnings per share of more than 50% in the first full year following Completion."

[farrugia] 09/9/2021 07:39

Gambling firm 888 to buy William Hill's non-U.S. assets for $3.03 bln

3 billion is a lot to pay.... It is strange for Israelis to pay so much when they have been known to be so resistant to overpaying before. What will 888 get from this besides the European business which I daresday will have quite a bit of crossover with 888's existing client base - i.e. some William Hill clients will already have an account with 888. Will 888 get the williamhill.com name brand?

[base7] 07/9/2021 13:56

Fred Done did brilliantly well out of Ceasars takeover of William Hill & perhaps he will use some of the profits to acquire the retail estate,assuming 8888 dont want retail,although I entirely take the point that retail can have its advantages 7 Ent only recently surprised The Market by acquiring Ladbroke/Coral & keeping the retail estate

[the white house] 07/9/2021 12:56

Big news but I think they should take a different route. The Hills estate is now superb having trimmed 6 branches into 1 near me making all left standing profitable. If I was the Israelis I would take the whole lot and, as Eldorado did with the Caesars takeover do the obvious marketing thing and put the whole family under the more famous William Hill bannerLadbrokes & Paddy still use estate to their benefit and even the huge online FanDuel is opening a huge B&M branch in Arizona this Thursday Why not create a huge competitor to entain and Flutter'

[adamb1978] 07/9/2021 12:55

Impact on EPS in round numbers:
- forecast net income of c.$100m at the moment so £70m
- add taxed PBT of WH's inline business of say £80m (PBT is c.£100m)
- subtract £1bn of debt raised at say 5% and with 20% tax shield, so £40m interest cost
- combined net income of £110m (70 + 80 - 40)
- 370m shares today; assume 480m post an equity raise per my figures above
- proforma of EPS of 23p (or 32 cents) vs 28 cents currently forecast

So pre-synergy it looks enhancing, and post-synergy it would be massively so

Adam

[adamb1978] 07/9/2021 12:42

Rimau1

Agree the transformational nature of it. WH's online operations, which is disclosed separately to the US business, generated £803m revenue in 2020 and £122m adjusted operating profit . Therefore the online business increases 888 scale by about 80%

Back of the envelope numbers:
- combined EBITDA of £300m pre-synergy
- assume short-term comfortable with going to 3x leverage, so £900m net debt capacity. This should quickly reduce in coming years
- call it £100m cash on the BS when the deal completes
- gives them £1bn from debt of cash
- assume that the £2bn price mooted is split 75/25 between online vs retail, so £1.5bn for the bit 888 want
- means £500m equity raise needed so c.30% of market cap

All vague numbers bashed out whilst eating sandwich but they'll get that equity raise away easily given business performance

Adam

[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