Renowned gambling giant 888 Holdings PLC is mulling over changing its name to Evoke PLC in a new ambitious rebranding strategy. This name change is part of a new plan to divest away from less profitable markets and focus on its best-performing markets.
London-listed 888 Holdings has announced that it will be rebranding to Evoke PLC, pending stakeholder approval at the company’s AGM in the next couple of months. The rebrand comes just a few months after a change in leadership and plans to exit the US B2C market, which has been challenging due to intense competition from other leading gaming operators.
The company has since reported that the move will redefine its corporate identity and bolster its market presence in jurisdictions that have proved to be strongholds for the business. 888 Holding’s core markets that will be a major part of the renewed strategy include the UK, Spain, Italy, and Denmark, collectively generating 85% of company revenue.
New Corporate Identity in Line with ‘Value Creation Plan’
The intentions for rebranding were made public in a release that contained the financial results report for the FY23 ending December 31, 2023. 888 Holdings’ new CEO, Per Widerström, appointed CEO in October, is spearheading the launch and implementation of a new strategic plan. Through the new blueprint, the company seeks to focus on resetting its operating model by embracing emerging technologies and concentrating on its main markets.
Further, as part of the Value Creation Plan (VCP), the company plans to implement some cost-saving measures, including eliminating redundancies in different departments. For 18 months, the company has faced a series of challenges, the top being a decline in profits that has, in turn, caused stock prices to slump. Other setbacks have been compliance failures and shake-ups in management that have seen 7 out of 10 executive positions awarded to individuals not formerly associated with 888 Holdings.
In a statement issued by the company, Widerström highlighted the steps the Group has taken since his appointment late last year, saying:
Quote“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… Having joined the company in October 2023, my conviction in the significant opportunity for the Group is stronger than ever. We have acted with pace, decisiveness, and urgency to build a clear strategy to deliver success. These actions include significantly strengthening our executive leadership team and developing a new strategic framework and Value Creation Plan.”
As mentioned, 888 Holdings also recently revealed that it would be ending its deal with Sports Illustrated. The company is looking to eventually divest through exploring partnerships with local companies or exiting unprofitable markets (the US market) due to low revenues, exasperated by regulatory hiccups, and cut-throat competition from other bookmakers.
That said, for other major gambling operators, the US market is vital in revenue generation, raking in a considerable percentage of the total from other regions. An example is Flutter, a London-listed gaming conglomerate boasting high revenues from the US region. The company also reported considerable losses in its non-dominant markets, but as communicated, it will take a different approach from that of 888; by strategizing in markets where the Flutter brand is not among the top. Flutter CEO Peter Jackson stated:
Quote“We believe that our strategy and competitive advantages position us well to continue to grow the business through both organic and inorganic opportunities.”
Being the parent company of renowned operator FanDuel, Flutter has already projected optimistic figures for the coming financial year, estimating a 30% increase in profit. Flutter’s confidence in the US market comes after several states have moved to legalize online gambling, providing an opportunity for its US outfit to expand. The growth recorded is so significant that the company has officially entered the NYSE and will stop trading on the FTSE as of May 2024.
Net Loss Recorded on Consecutive Fiscal Years
On the other hand, 888 Holdings, which also owns Mr Green alongside other 888 brand outfits, approximates that Q1 of FY24 would bring in between £420 million and £430 million in revenue. With that, the adjusted EBITDA is expected to be around £340 million by the close of the year. While the total earnings for FY23 rose significantly compared to FY22, there was still a net loss, albeit less than that recorded in 2022.
The bookmaker reported a post-tax net loss of £56.4m, less than the £120.5m lost in 2022. The overall rise in revenue from the previous year has been attributed to the company’s acquisition of William Hill from Caesars Entertainment in July 2021. CFO Sean Wilkins reported on Tuesday at the company’s earnings call:
Quote“We are under no illusions that this financial performance has been disappointing.”
Overall, 888 is looking to consistently improve annual revenue by 5-9% in the coming years, aiming to have an adjusted EBITDA margin of 100 basis points. As revealed by the CEO, all the efforts put up front will be vital in ensuring that the rebrand clearly culminates in a better reflection of the Group’s robust multi-brand operation model. 888 CEO Widerström also commented on the anticipated growth, noting:
Quote“We are at the beginning of an exciting new journey. We will build on our strong foundations through a clear strategy and focused plan that will deliver sustainable, profitable growth and unlock significant value creation… I look forward to updating shareholders and our wider stakeholders on progress against our plans over the coming months and years.”
Rebranding a Great Strategy But Not Without Risks
Regarding corporate rebranding, the results are bound to either favor the company or work against it. In the case of 888 Holdings, it is clear that the company is heading in a slightly different direction with a focus on the core markets and exit from low-margin jurisdictions. Some UK-listed companies that have previously rebranded include GVC Holdings, which became known as ‘Entain Group,’ and Paddy Power Betfair, which changed to Flutter.
Given the new strategic direction, 888 has seen it necessary to reflect the new image by re-aligning the brand. The company seeks to differentiate itself and captivate consumers’ attention in an ever-evolving digital landscape by rejuvenating its brand identity. As 888 prepares to re-emerge as Evoke PLC and make its mark in the online gaming industry, all eyes will be on how this strategic rebranding endeavor shapes its future trajectory and market positioning.
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