888 and Caesars Entertainment agree reduced price for William Hill

Shares in gambling operator 888 surged on Thursday after it was revealed the company had agreed a £250 million price cut for William Hill International, which it said reflected the "change in the macro-economic and regulatory environment" since the deal was first announced in September.

888 agreed to buy William Hill's non-US business from Caesars Entertainment last year in a deal worth £2.2 billion.

The company said on Thursday the value of the deal, which is expected to be completed in June, had reduced to between £1.95bn and £2.05bn.

Shares in 888 rose to 251.8p at one stage on Thursday morning, before settling back to 224.2p, an increase of 16.7 per cent later in the day.

888 said it intended to help pay for the purchase by issuing nearly 71 million new shares worth around £162.9 million.

The company also revealed William Hill was subject to an ongoing licence review by the Gambling Commission over social responsibility and anti-money laundering obligations.

William Hill have put aside £15m to cover any regulatory sanctions.

Meanwhile, online growth at Entain, the parent company of Ladbrokes and Coral, has finally stalled, according to a first quarter trading update issued on Thursday.

Online net gaming revenue (NGR) was down eight per cent compared with the same period last year when figures were affected by lockdown.

Entain had recorded its ninth consecutive year of double-digit online growth in 2021.

Nevertheless, group NGR was up 31 per cent, supported by the return of retail where volumes settled within five to ten per cent of pre-Covid levels.

Entain chief executive Jette Nygaard-Andersen

Chief executive Jette Nygaard-Andersen said the company remained confident about its performance for 2022 and beyond.

She added: "We have started the year with a good performance across all areas of our business driven, as ever, by the strength of our industry-leading platform.

"We have delivered strong performances in all of our major markets, and I am pleased to report that retail is performing well with customers returning for our in-store experience."

Gavin Kelleher, analyst at stockbrokers Goodbody, said Entain's first quarter performance was "very much in line with guidance and expectations", given tough comparatives and the company's temporary exit from the Netherlands due to a new regulatory regime.

Entain's share price was down 66.5p at 1,555p on Thursday afternoon.

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