888 Want to Reduce Huge Debt to Ease Investor Concerns

888 Holdings said that it is aiming to reduce its debt of £1.6 billion to reduce concerns by investors, the huge debt was incurred mainly due to the operators acquisition of William Hill and all its assets in the UK and Europe as part of the larger purchase by Caesars of all of William Hill, which the US casino giant wanted only the US facing part of the business.

However, 888 want to reduce that debt now with investors concerned with rising interest rates by banks around the world.

William Hill cost 888 £1.95 billion and the online operator said that is now more exposed to higher interest rates because of the structure of that deal.

The target is to reduce debt from 5.7 times revenues to around 3.5 times revenues by the end of 2025. The worry is that of all the total debt 64% is on floating interest rates and those rates are increasing.

888’s Chief Executive Itai Pazner said on the William Hill deal: “he absolutely did not regret the deal.”

He went on to say: “What is in our control is how we deal with it,” said Pazner. “We have very solid plans in order to deleverage and to create higher margins for our business. I’m confident that we’ll be able to deliver those plans and deliver a much stronger balance sheet.”

Pazner also said in comments that the company expected the UK Governments Gambling White Paper will arrive before the Christmas recess.