William Hill owner 888 Holdings PLC (LSE:888) reports results next week with a new management team in place, almost exactly the same situation as a year ago, which has caused investors and analysts to question if 2023 was just a dream.
“Bobby steps out of the shower,” was the headline for analyst Ivor Jones at Peel Hunt, with a reference to the infamous dream-sequence plot twist from Dallas.
“Old tune, new band,” Jones said, noting that new chief executive Per Widerström, ex of Gala Coral and PartyGaming, will set out a new strategy alongside results.
“Strategy does not have to change much in our view,” the Peel Hunt analyst added, “it ‘just’ needs to be executed.”
Guidance for the coming year has already been cut, at a trading update in January, with adjusted EBITDA seen towards the low end of the previous £340-397 million range.
Unless first-quarter trading is knocking the lights out, “we cannot see any reason for management to encourage forecasts higher,” Jones said.
A recent downgrade from Ladbrokes owner Entain due to regulatory risks in the UK and Netherlands, could see 888 take a similarly precautionary stance.