Moody’s flips 888 outlook to negative

Moody’s Investors Service said it changed 888 Holdings plc’s outlook to negative from positive and affirmed its B1 ratings.

“The 2022 post-close update indicated that revenue and EBITDA were below Moody's previous expectations. The rating agency has revised its projections for 2023 downwards. Moody's now expects larger cash outflows as a result of higher interest costs (combination of hedging and further increase in base rates are to materialize) and higher costs to deliver synergies (which have been raised by 50% during the company Capital Market Day last December) combined with uncertainty on the timing for the re-entry into the Netherlands and the changes to the U.K. Gaming Act that are likely to continue to put pressure on online revenue growth in the U.K.,” the agency said in a press release.

Moody’s said it expects 888’s elevated leverage to remain mostly unchanged until 2024.

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