888 Holdings Regulatory News (888)

19 April 2024

888 Holdings Plc

("888" or "the Group")

Q1 2024 Trading Update

Q1 2024 revenues slightly ahead of guidance; no change to full year expectations

888 (LSE: 888), one of the world's leading betting and gaming companies with internationally renowned brands including William Hill, 888 and Mr Green, today announces a trading update for the three months ended 31 March 2024 ("Q1-24" or the "Period"). Further detail on the financial results by division is included as an appendix to this announcement.

Financial highlights

· Group: Revenue of £431m, slightly ahead of the £420-430m guidance range previously outlined at the FY23 Results on 26 March 2024. Revenue up 2% relative to Q4 2023, reflecting a continuation of positive sequential quarter-on-quarter trends. The Group continues to expect revenues to return to year-on-year growth from Q2 2024 onwards, with full year 2024 revenue growth expected to be consistent with the mid-term target of 5-9% annual growth.

· UK&I Online: Continued strong customer engagement with average monthly actives +9%. Revenue -1% with a return to growth in gaming (+4%) more than offset by reduced sports revenues, primarily driven by increased customer investment across the Cheltenham Festival relative to the prior year. Revenues are expected to return to year-on-year growth from Q2 onwards driven by strong customer engagement, new product launches, and the annualization of safer gambling changes.

· International: Continued positive sequential growth with Q1 2024 revenues 6% higher than Q4 2023. Following the annualisation of significant compliance changes from February 2024, the segment returned to year-on-year growth with 4% growth in February and March, driven by the Core markets of Italy, Spain and Denmark.

· Retail: Revenues -7%, reflecting shop optimisation (2% reduction in shops year-over-year) and challenging basis of comparison, with Q1 2024 revenue consistent with Q4 2023.

Strategic highlights

· On 26 March 2024 the Group announced its new strategy, Value Creation Plan (VCP) and clear medium-term financial targets, namely to grow revenue by 5-9% per year, improve adjusted EBITDA margin by approximately 100bps per year and focus on deleveraging to reach net leverage of 3.5x or below by the end of 2026. Strategic focus on embedding new ways of working across the business.

· New corporate identity - evoke plc - to better reflect new 'One Company' approach, to be launched in May 2024, subject to shareholder approval at the AGM on 13 May 2024.

· Reset of operating model well progressed, with £30m 2024 operating cost savings being reinvested into more profitable marketing to drive growth, in-line with the VCP.

· Conclusion of strategic review of US B2C business announced on 28 March 2024, with the sale of selected assets and closure of remaining operations expected during 2024 subject to regulatory approvals. This is expected to deliver an ongoing EBITDA improvement of £25 million per year from 2025.

Per Widerström, CEO of 888, commented:

"I am pleased to report that Q1 2024 revenue was slightly ahead of our guidance, with strong player volumes converting into improved revenue run rates. Having lapped various regulatory and compliance changes during the quarter, and with increased marketing investment supported by an exciting product pipeline, we remain confident in a return to growth from Q2 2024.

I was delighted to outline our multi-year value creation plan alongside our full year results in March, and am pleased to report a strong quarter of progress against these plans. We are moving decisively and at pace to position our company for long-term success, and I look forward to providing further updates about our progress in the coming months."

About 888 Holdings Plc:

888 Holdings plc (and together with its subsidiaries, "888" or the "Group") is one of the world's leading betting and gaming companies. The Group owns and operates internationally renowned brands including William Hill, 888, and Mr Green. Incorporated in Gibraltar, and headquartered and listed in London, the Group operates from offices around the world.

The Group's vision is to make life more interesting and its mission is to delight players with world-class betting and gaming experiences.

Find out more at:

http://corporate.888.com/

Important Notices

This announcement may contain certain forward-looking statements, beliefs or opinions, with respect to the financial condition, results of operations and business of 888. These statements, which contain the words "anticipate", "believe", "intend", "estimate", "expect", "may", "will", "seek", "continue", "aim", "target", "projected", "plan", "goal", "achieve", words of similar meaning or other forward looking statements, reflect 888's beliefs and expectations and are based on numerous assumptions regarding 888's present and future business strategies and the environment 888 will operate in and are subject to risks and uncertainties that may cause actual results to differ materially. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of 888 to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond 888's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors such as 888's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which 888 operates or in economic or technological trends or conditions. Past performance of 888 cannot be relied on as a guide to future performance. As a result, you are cautioned not to place undue reliance on such forward-looking statements. The list above is not exhaustive and there are other factors that may cause 888's actual results to differ materially from the forward-looking statements contained in this announcement. Forward-looking statements speak only as of their date and 888, its respective parent and subsidiary undertakings, the subsidiary undertakings of such parent undertakings, and any of such person's respective directors, officers, employees, agents, affiliates or advisers expressly disclaim any obligation to supplement, amend, update or revise any of the forward-looking statements made herein, except where it would be required to do so under applicable law. No statement in this announcement is intended as a profit forecast or a profit estimate and no statement in this announcement should be interpreted to mean that the financial performance of 888 for the current or future financial years would necessarily match or exceed the historical published for 888.

Appendix: Divisional Summary

Q1 2024