888 Holdings set to transform into Evoke, enacting a strategic adjustment in the gambling sector's orientation.
The publicly traded gaming corporation 888 Holdings is planning to transition to the name Evoke in the future. This shift isn't just a simple rebranding, but rather a strategic overhaul for the company, which faced a complex business year in 2023.
Business metrics may not always be clear
The financial metrics of 888 Holdings were tricky to decipher last year, as reported by industry publication iGaming Business. On the surface, the gaming company saw its revenue grow from £1.24 billion (approximately €1.45 billion) in 2022 to £1.7 billion in 2023.
However, this growth was primarily due to the acquisition of the William Hill brand, while the revenue for 888 Holdings' ongoing operations decreased by 8%.
Moreover, the adjusted operating profit decreased by 25% to £48.1 million compared to the previous year. The actual net loss was £56.4 million. Although this represents an improvement over 2022, it's still a negative sign.
New CEO, new approach, and new name
Sweden's Per Widerström, who took over as CEO of 888 Holdings in October 2023, has been working on a new value creation plan in recent months to support the company's long-term success strategy. This includes expanding market share in relevant countries while simultaneously cutting costs.
According to the CEO, the new direction of the company is like a reset and represents a new beginning in the company's history:
"It's enormously thrilling to unveil our value creation plan, our success strategy, our new financial targets, and our new corporate identity. Today marks the start of an exciting new chapter for this company." – Per Widerström, CEO of 888 Holdings, source: iGaming Business
To emphasize this new beginning, 888 Holdings intends to propose to shareholders at the next annual general meeting to rename the company to Evoke. Evoke can be translated as "to evoke" or "to stimulate," which should be seen as a sign.
About 888 Holdings
888 Holdings PLC is a Gibraltar-based gaming company that has been in operation since 1997 and went public in 2005. The company operates various gaming and poker portals, all of which bear the name 888.
In addition to its own core business, the company also has various investments. The most significant one is likely William Hill, whose acquisition spanned several years. The subsidiary Mr Green has also been a part of 888 Holdings since then.
About a year ago, William Hill was hit with a hefty fine in the billions. Although 888 Holdings has distanced itself from the reasons for this fine, it's possible that it could have impacted the consolidated results.
Shareholders seem optimistic
To make the name change from 888 Holdings to Evoke official, the company needs the approval of its shareholders. Currently, shareholders seem quite optimistic about the future of the gaming company.
In recent days, the stock has risen by roughly 5%. Over the past 12 months, the stock has even increased by almost 70%. However, the trend over the past few years can be described as falling or flatlining.
It remains to be seen whether the company will return to its past successes under the leadership of Per Widerström. Regardless, more than just a name change will be required.
Despite the complex financial situation in 2023, where 888 Holdings' revenue growth was mainly due to the acquisition of William Hill, online casinos in Germany might still be a potential market for expansion.
As Per Widerström aims to cut costs and expand market share, considering the regulatory environment in Germany, 888 Holdings or Evoke, as it may be named, could seek to establish a strong presence in the German online casino market.
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