888 Holdings, the London-listed firm, revealed that it intends to rebrand itself as Evoke plc and shift its attention to key European markets including Denmark, Spain, Italy and the UK, in addition to cost-saving measures.
Rebranding to potentially help the firm get back on track:
Per Widerström, the new chief executive of 888 Holdings, is reportedly currently attempting to turn around an 18-month-old slump in the firm that has threatened its stock price. Additionally, the main goal of Widerström, a true veteran of the online gambling industry who was named CEO in October, is to try to bring to life the former wealth of the now-beleaguered firm, which has been rocked by management shake-ups and compliance failures during the duration of the past 18 months, according to the Financial Times.
The name change would “better reflect the strength of the group’s multi-brand operating model and its vision and mission to make life more interesting by delighting players with world-class betting and gaming experiences,” commented 888.
Furthermore, the firm also experienced a huge level of stress to decrease the debt it took on to fund the acquisition of William Hill’s global operations, which took place in 2021.
The four mentioned markets, which will now be at the center of attention, caused approximately 85% of its income. Additionally, their income hit £1.7bn in 2023, an increase from £1.2bn two years ago, back in 2022.
According to the source, the US doesn’t represent a crucial market for the company, unlike for few of its rivals. In that sense, 888, which revealed at the beginning of this month that it wants to exit its US consumer sports wagering business, commented that the choice would bring “significant cost savings.” Additionally, it also commented that it will end its alliance with Authentic Brands Group, which gave it exclusive utilization of the Sports Illustrated brand in America for online gaming and wagering.
Corporate rebranding carries significant risk:
There is significant risk in the process of corporate rebranding. An example of this is Standard Life Aberdeen, a fund management group, which shortened its name to Abrdn in 2021, for which received ridicule. Another example is the Royal Mail which in the end changed its mind to change its name to Consignia.
In addition to the newest name, which will need validation of shareholders, the firm also reportedly revealed fresh financial goals, involving reducing its leverage by 2026 and growing income by between 5% and 9% annually in the medium term.
Commenting on that, Jefferies analyst James Wheatcroft reportedly said that the fresh goals “sit slightly ahead of consensus estimates” and added that there occurred “a step-change in urgency at 888 to position the business for long-term success” since Widerström was named the CEO.
Furthermore, the company’s shares rose 6% on March 26, according to the Financial Times.