888 has sold its US B2C assets to Hard Rock Digital in a conclusion of its strategic review announced earlier this month. The sale will be completed upon meeting conditions such as regulatory approvals.
The sale is expected to be concluded in several phases that will be completed by the end of the year.
In removing itself from US B2C operations, 888 (which will soon be renamed Evoke) also agreed to terminate its partnership with Authentic Brands Group, ending its partnership with Sports Illustrated (SI). This resulted in the brand paying $25m upfront in termination fees, with an additional $25m to be paid between 2027 and 2029.
888 expects that its extraction from the US B2C market will create an annual benefit to adjusted EBITDA of £25m ($31.5m) from 2025 onwards. However, it also expects that it will incur one-off costs of around £40m in the extraction process, which it expects to pay from this year up until 2029.
Of the £25m saved annually, 888 intends to reinvest roughly £10m in various growth and value initiatives.
The announcement comes less than a week after the company announced its FY23 results, where it generated $1.7bn in revenue, up 38% year-on-year. Adjusted EBITDA also grew, up 41% year-on-year.
888 also announced plans to change its company name as part of its 'Value Creation Plan.'
CEO Per Widerström explained, "The consumer brands remain as strong as ever, but to reflect the fact that this is a new company on a new journey, we are proposing to change the name of the Group to Evoke plc. This will be subject to shareholder approval at our upcoming 2024 AGM."
