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888 will change its name to evoke the British gambling group’s new chief executive, Per Widerström, as he seeks to draw a line after a year of upheaval that has hammered its share price.
The name change was one of several steps set out by 888 on Tuesday, including a focus on its core markets of the UK, Italy, Spain and Denmark, as well as cost-saving measures.
Widerström, an online gambling industry veteran who was installed as chief executive in October, is trying to revive the fortunes of the indebted group which has been marred by compliance failures and management upheavals over the past 18 months.
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,” 888 said.
London-listed 888 has also been under pressure to reduce debt it took on to finance its 2021 acquisition of William Hill’s international business.
Corporate rebrands, however, can be risky. Fund management group Standard Life Aberdeen was mocked for shortening its name to Abrdn in 2021, while Royal Mail ultimately reversed its decision to rename Consignia.
In addition to the new name, which will require shareholder approval, 888 has set new financial goals, including increasing revenue between 5% and 9% annually over the medium term and reducing leverage by 2026.
James Wheatcroft, an analyst at Jefferies, said the new targets “are slightly higher than consensus estimates,” adding that there was “a sea change in 888’s urgency to position the company for long-term success.” since Widerström was installed as CEO.
Shares of 888 rose 6% on Tuesday.
The company said the four markets it will focus on now – the UK, Italy, Spain and Denmark – generate about 85% of its revenue. Its revenues reached £1.7 billion last year, up from £1.2 billion in 2022.
Unlike some rivals, the United States is not a key market for 888. The company, which announced plans this month to withdraw from the U.S. consumer sports betting business, said Tuesday that the decision would result in “significant savings on costs”. .
It had said it would end its partnership with Authentic Brands Group, which had granted it exclusive use of the Sports Illustrated brand in the United States for online betting and gaming.