Member Info for Saab93se

The meeting is definitely this Tuesday 23rd, 9am BST. Just checked my emails and found an invitation sent 26th April.

Hmm 🤔 may have to reduce my holding Monday morning while I’m still in profit.

Not yet. Reading the AGM resolutions now…

What you on about MagicFinanace?

£5.5m with costs and expenses deducted won’t leave much for shareholders at all!

JPP88, I agree but there must be an element of competition between the institutions?

Do shorters prefer to close their positions before weekends? I’d probably cash in my profits at this point so I could celebrate a successful week and I’d want to pre-empt other shorts doing the same, hence could see a price rise today or tomorrow… just a thought.

TerryMC1, I noticed your comments on Asos earlier and surprised their debt doesn’t concern you like 888’s supposedly does. Asos net debt increases from £62.6m to £431.7m in H1 2023, interest expenses of £30m expected in H2, revenue slipped 8% and their adjusted ebit margin was a pathetic -3.8%, yet you think it’s 888 who is bogged down with debt?

My understanding is that tighter regulation in 2022 has already caused a 15% decline for 888’s online gambling revenue year on year, offset by an increase in retail revenue (William Hill shops) which reduced the overall decline to 3%. Is William Hill going to be worth the yearly £165m debt costs? I think so but it’s open to debate and has certainly led to a sustained decline in the share price since the acquisition.

*CFO

I’d recommend visiting the 888 investors website and listening to the Debtholder call of 14/4/23. The CEO describes 2022 as a “large year of cash exceptionals” (despite which 888 still finished with £327m liquidity including unused £157m rcf)

My thoughts exactly. The cfo knew he had 180,000 shares coming so he bought 20,000 in advance to make it a round 200,000.

The figure for debt and revenue are about the same but while debt interest is costing <10%, adjusted ebitda is nearer 20% and growing.

If 888 + WH can achieve £2bn revenue with an adjusted ebitda margin of 23% within the next 2 years (and there’s cost saving targets of £100-150m with £87m synergies in 2023 alone) they’ll be making plenty of dents in that debt pile.

£1.77bn debt, £165m cash interest. For every £100m debt reduction, adjusted EPS +2p. For every 1% decrease in debt cost EPS +3p. For every 1% increase in revenue EPS +1p. For every 1% increase in adjusted EBITDA, EPS +3p… it all adds up. Can see why there’s a commitment to deleveraging as a priority. I think 888 can handle the debt and a target of 35p EPS by 2025 isn’t unrealistic.

Yes, Dogger. The long wait for the much anticipated gambling white paper after so many years of uncertainty is very nearly over. That dark cloud looming over the horizon of UK gambling, casting doubts and stifling investment, is soon to be over.

If there’s any possibility of a takeover, it’s unlikely while the gambling white paper is pending. Investors need to know what the future holds for online gambling in the UK, and this could be a reason 888’s share price remains suppressed. All may be revealed on Thursday if the rumours are true but it could be released any time.
https://igamingbusiness.com/legal-compliance/government-source-confirms-white-paper-imminent/

Pre-William Hill, 888’s dividend policy was 50% of profit before tax to shareholders. This has been put on hold until debt from the WH acquisition has been reduced and synergies have increased profitability. When they’ve achieved a debt to ebitda ratio of less than 3 (likely around 2025) the dividend policy should resume.

Maybe you should be worried, Dogger. The SP has more than halved over the last year in anticipation of the White Paper. It could double overnight and be the start of a long bull run or takeover bid.

Correction: Flutter Entertainment has a market capitalisation 80x 888 Holdings