UPDATE 1-Bookmaker 888 to sell some US assets to Hard Rock Digital
(Adds details of sale in paragraphs 2 and 3, company context in paragraphs 4, 5)
March 28 (Reuters) - British betting and gaming firm 888 Holdings will sell some assets in its U.S. consumer-facing operations to Hard Rock Digital, and expects to exit that business by fourth quarter of 2024, it said on Thursday.
The company, which had earlier this month revealed it was considering selling the U.S. consumer-facing business amid a strategic review, said the exit is expected to realise a recurring annualised benefit to adjusted core profit of about 25 million pounds ($31.5 million) from 2025 onwards.
It said the group currently expects to incur net one-off cash costs of about 40 million pounds from the exit.
888 said on Tuesday it plans to change its name to evoke plc to reflect its multi-brand model as CEO Per Widerstrom looks to shift focus to core markets, reset its operating model with a close eye on automation and artificial intelligence, remove duplication and deliver more cost savings.
The company, which operates online casino, poker and sportsbetting under its 888 brand umbrella as well as Mr Green, reported a 41% jump in 2023 adjusted core profit as it reaped benefits of its 2 billion pound acquisition of William Hill in 2022 from Caesars Entertainment.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Mrigank Dhaniwala)
