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Highlights
- 888 Holdings Plc has signed an agreement to acquire the non-US business of William Hall for£2 billion.
- The combination of both companies is likely to deliver considerable efficiency and higher revenues due to enhanced customer proposition and product offerings.
888 Holdings Plc (LON:888), one of the leading and most popular online gaming entertainment providers, has signed an agreement with Caesars Entertainment, Inc. to acquire the international business of William Hill (Expect for US business). The proposed acquisition, which is awaiting a shareholder’s approval, will create a global business with a market leadership position in the online betting and gaming industry.
888 Holdings will acquire the non-US business of William Hill for £2.2 billion, including 1,400 betting shops across the UK and core territories of operations like Italy, Spain, and the Nordics. Along with leading brands like Mr Green, which operates across Europe.
The company expects the combination of both companies to deliver considerable efficiency and higher revenues due to enhanced customer proposition and product offerings and would deliver pre-tax cost synergies of at least £100 million per year with improvement in profit margins.
© 2021 Kalkine Media
Let us look at 3 other FTSE listed gambling stocks that could be a potential buy:
Rank Group Plc (LON:RNK)
The company offers a range of casino table games, sports betting and other services like food and live entertainment in different countries.
The company has a diversified presence across online portals along with venues at different locations. Before the onset of Covid-19, the company used to derive 79% of revenue from the venue business, which was impacted severely due to lockdown. However, the company still managed to earn revenue of £288.2 million for the 12 months ended 30 June 2021. Most of the revenue earned last year is attributed to digital sources; hence the company has increased its digital presence during the pandemic, which will further boost future revenue.
Rank Group Plc’ current market cap stands at £799.14 million as of 10 September 2021. In the last one year, the stock has given a 36.60% return to shareholders.
Gamesys Group Plc (LON:GYS)
The company offers online casino and bingo games under various names in the United Kingdom, Europe, and Asian markets.
The company’s board has agreed to a £2 billion takeover bid from the US casino operator Bally for a share deal. The takeover deal helps the company expand into digital betting. Also, the company reported a 17% rise in revenue at £398.8 million and adjusted EBITDA of £110.3 million during the six months ended 30 June 2021. The combination of both the companies is expected to be complete by the fourth quarter of the current financial year.
Gamesys Group Plc’s current market cap stands at £2,014 million as of 10 September 2021. In the last one year, the stock has given a 67.92% return to shareholders.
Entain Plc (LON: ENT)
FTSE100 listed company operates online portal and in the retail sector. The company provides sports betting and gaming services under various brands names in over 20 countries across five continents.
The company has a licence to operate in 27 countries and has a leadership position in most markets with an average market share of 13% to 15%. Also, the company has a track record to deliver strong organic growth. The company in recent times has made significant progress in the US market with BetMGM being the number two operator in the US market, and it aims to gain a market share of 20 to 25% in the North American online market, which is estimated to have a market size of USD 32 billion over the long term.
Entain Plc’s current market cap stands at £11,252 million as of 10 September 2021. In the last one year, the stock has given a 131.89% return to shareholders.
