Losses force Flutter and 888 to refocus
TWO of the City’s biggest bookies — Paddy Power parent company Flutter and William Hill owner 888 — each signalled a step away from plans for global expansion today as they reported big losses.
A major change in strategy to focus more on its “core markets” like the UK, Italy and Denmark was flagged by 888. It said that it may quit “unprofitable” countries, or find “alternative operating models” for them. The company recently gave up on its US venture.
The new plan comes with a name change, as 888 will rebrand to Evoke. The bookie said the change better reflects its ownership of multiple brand names, and its “mission to make life more interesting by delighting players”. The rebrand resembles GVC Holdings’ change of name to Entain in 2021, which came as the Ladbrokes owner sought to distance itself from so-called
“grey” markets where the legal status of gambling is often vaguely defined.
888 had trouble in its non-core markets last year, as it launched an internal probe into the checks it performed on Middle Eastern high-rollers. The firm made a £56 million loss, partly due to the costs of servicing the huge debts it took on to buy William Hill in 2021.
888’s strategy change comes under new boss Per Widerström, who took over in October.
He said: “It is incredibly exciting to announce our Value Creation Plan, our strategy for success, our new financial targets, and our new corporate identity. Today marks the beginning of an exciting new dawn for this business.”
At the same time, the recently duallisted owner Flutter Entertainment made a $1.2 billion loss as was hit by massive writedown costs, mainly in “non-core” markets where it also is decreasing its focus.
The betting giant cut the value of its Pokerstars brand by more than $700 million, saying it would focus on folding the poker brand, its most international offering, into its other sites.
Flutter recently started selling its shares in the US, where its FanDuel brand has dominated after the states started legalising betting in 2018. It will switch to a primary US listing, and therefore lose its spot in the FTSE 100, on 31 May.