M&A Announcement

Sep 9, 2021

Welcome to the 888 Holdings Plc Analyst and Investor Presentation. At this time, I would like to turn the conference over to Itay Posner. Please go ahead. Thank you. Good morning, everyone, and thanks to for joining us this morning on a historical day for 888. I'm joined here today by Harib Dafnaur, our CFO and Paul Lewis, our CSO. I look forward to telling you about this hugely exciting transaction. Starting with the agenda on Slide 4, I'll give you a quick overview and then I'll hand over to Van to explain why this is strategically such a positive deal. To I'll then expand on how the combination positions us in a large business that is set for future growth to and then Jorrit will explain why it's also such a financially compelling deal for us. We'll then open up for some questions. To Turning to Slide 5, we feel that bringing together 88 and William Hill to is a perfect combination and will deliver significant shareholder value. Firstly, a bit about the business we're acquiring. William Hill to International. It's all of the original William Goode Plc except for the U. S. Business. It includes all of the technology and brands to to the scale and diversification of the business, particularly embedding. We created a regulated market leader to the company with really strong positions across some of the most attractive global markets. We will massively enhance our management capabilities, to bringing in some great talent from across the William Hill business. We will also see a step change in scale and all the benefits that come from that, including enhanced margins. With leading products and brands across bidding and gaming, we will really enhance our player proposition to And adding retail gives us a great new channel to engage with customers and build our brands, which we're really excited about. To Yaurit will cover the financial details later, but I just would like to say that we've reviewed many opportunities to And I really believe that this transaction places 888 in a very strong strategical position in the market to the financial returns are really, really attractive. Moving to Slide 6, to we show some highlights of the 888 and William Hill that explain why we're so excited about this transaction. To 888 is a technology and gaming business by its DNA with scalable global platform and huge digital capabilities. To our customers as a world class gaming brand. William Hill is a bookmaker by DNA to an iconic betting brand that is instantly recognized across the UK and other markets. We are now both digitally led, customer focused to the operator and the CEO of the company's financial performance. Alongside these solid foundations to both businesses. We have both made great operational progress in the last two years. To As you can see, how strong the momentum in both the businesses is here. We reported our results last week, but as you can see to William Hill is also flying with 40% total online growth in the first half of this year to and over 50% revenue growth in its U. K. Online division, making significant market share. To The combination of ADH's technology and gaming led business with William Hill's sports led business will create a really powerful and large business. To Underpinned by scale, technology, talent and brands, the large business will be really well placed for continued growth. To I'll now hand over to Vaughan to run through some of the opportunities of the enlarged business. To Thanks, Todd, and good morning, everyone. So, yes, this is a combination that's been discussed many times over the years, to And it's great to be part of the bringing these great businesses together. The reason why the combination is being discussed so much is just to how powerful the strategic logic is for this combination, which we outlined on Slide 8. So it creates a really well diversified revenue mix, to In particular, increasing our exposure to betting as I mentioned. It's the largest and fastest growing online vertical to And our revenues here will increase by around 5 times as a result of the transaction. The combination strongly enhances our position in key regulated markets. To the operator. These are the markets that represent our biggest and most attractive long term growth opportunities. There will be a step change in scale, which delivers a boost to our margins and will bring in loads of outstanding talent to support our combined growth plans. To we'll continue to create best in class products combining the best of both D. J. Tate and William Hill, creating further opportunities for revenue growth. To Slide 9 now and primarily this deal is about delivering growth. As we've seen over the past year, the migration of betting and gaming to digital is really driving growth in our to the operator. The scale and pace of regulatory change creates opportunities for us. All of this means the combination of these two complementary businesses to the company's business, better positioned to deliver growth and better positioned to prosper through that regulatory change. To the strategic pillars laid out in this virtuous circle, which gives us more capacity to invest in future growth. The combination of the amazing AT and T Gaming brand to the company. The iconic William Hill Sports brand gives us a really powerful brand platform to drive future growth. To. Combining our best in class technology and products across the businesses will further improve customer experience and that should drive up share of wallet to as we broaden our engagement with customers, including through a really strong omni channel opportunity. And our scalable technology will further enhance our operating leverage, providing more funds for us to invest in future growth. Turning to Slide 10, the combination drives a step change to our competitive position in some of the largest and most attractive regulated online betting and gaming markets. To So on Slide 10 are our top 10 regulated and regulating online betting and gaming markets. You can see the combined share here will already be in the 5 to the 10% range in most of these markets with top three positions in the U. K. And Spain. Building leading positions in these core growth markets really underpins the to the strategy here. And with the combination of our brands, products and operating skills, we're really well positioned to build top three positions across these markets. To I'll now hand back to Ittai to run through how this combination fits in with our broader growth plans and long term plans for 888. To Thanks, Vaughan. So turning to Slide 12, the combination puts us in an even stronger position in our the U. K, Italy and Spain. As you can see in the charts, the combined market share will be over 12% in the U. K, over 10% in Spain and nearly 7% in Italy. As well as materially enhancing our market share position, the large business to the operator. Turning to Slide 13, to Alongside our core markets, we have 6 markets where we see really strong growth potential for the combined businesses, Germany, Canada, Netherlands, Romania, Denmark and Ireland. The combined opportunities of these six markets is around $7,500,000,000 to the company. With the combined strength of the brand's technology and people, we will be really be well positioned to get to top three positions across these markets. To Turning to the next slide, 14. The combination with William Hill doesn't change our exciting plans for the U. S. To, which are based on the newly established SI Sports Illustrated Sportsbook brand. SI is a really strong American brand to the operator. With a large and growing customer base in the U. S, partnering with these brands allows us to invest much more selectively and effectively in the U. S. To With a clear focus on using SI's brand footprint and positioning to acquire customers more effectively and to build a profitable business over time. I'm pleased to say that we successfully launched the SI Sportsbook First Market in Colorado at the beginning of this week, to And we are really excited about the opportunity to enhance our U. S. Growth plans with more markets to come soon, to, combined with the significant additional sportsbook expertise that William Dell team brings, including from prior operations they had in the U. S. To Turning to Slide 15. And one of the things that excites us most about this the company. The combination is the ability to support and enhance our product leadership strategy by levering a range of top quality products and features to really enhance the customer experience. William Hill has totally repositioned his product in the last 12 months to And as long a brand new features and product, the further we went into this process, to. I was more impressed with what William Hill is doing and what they managed to achieve in the last 12 months. We share a really clear product principles built around engagement products that are quick and usable and content rich. To these products always have safe gambling in their core and we will ensure scalability by combining our best of breed products, to building them once and deploying them globally. The opportunity to drive revenue synergies to from areas such as product enhancements and sharing of content is one of the really exciting aspects of this deal. To Slide 16. I'd like to expand a bit on the William Hill Retail Business. We're really excited about the retail business to Anssi, real brand benefits here. Having an estate of 1400 shops across the UK, to helping to build the brand awareness and trust and to maintain the long standing heritage of the William Hill brand. The management team have done a great job with the retail business. The state has been right sized reflecting to First, the changes in regulations for the gaming machines and then the impact from COVID-nineteen. While there are still undoubtedly some to difficult decisions for the team and very difficult periods for colleagues. Our due diligence work suggests it the company. It has put the business in a really strong and sustainable position with a high quality estate run by thousands of friendly and knowledgeable shop floor staff. William Hill is the highest rated retail brand for convenient location, to, which is one of the most important drivers for customers' traffic. It's really a strong brand with loyal customer base to and is the most recommended brand as a result of that. The management team have loads of exciting plans here, bringing a new technology to both betting and gaming. As part of this, we see a really big opportunity in omni channel, enhancing the customer to the operator for people who bet across both retail and online. I'll now hand over to Yariv to outline how compelling This transaction is from a financial perspective as well. Thanks, Itay. Good morning, everyone. To On Slide 18, we have tried to put all the key details of the transaction on one page, hopefully, most of which you have seen to the operator. So I will just expand on some of the key points here. The headline price is RMB 2,200,000,000, to Including EUR 100,000,000 of capitalized list cost. So EUR 2,100,000,000 is the amount that we actually need to finance. To We put on this slide that this represent 9.2x multiple based on normalized 2020 EBITDA. To Given the strong current trading and Itay mentioned 40% growth of William Hill in the first half of the year, if we use the last 12 months to May, the company. The price represents approximately an 8x multiple or 6x post synergies. Mr. President. Based on comparable multiple in the market and for similar transactions, this represents a compelling price for a top quality asset. To I will cover the financial profile on the next few slides. So just quickly in terms of timetable, the main condition to closing is our shareholder vote. To I'm pleased to say that we have seen strong shareholder support so far and we will look to hold the formal vote in Q1 2022 to and complete the transaction in the first half of twenty twenty two. Moving to Slide 19. On a combined basis, the Enelab business would have generated just over $2,500,000,000 in revenue on a normalized basis in 2020. To The waterfall chart here breaks out the key component of this and it is important to note that this is an adjusted figure reflecting estimate of a full year trading in retail. The deal will triple our revenue and EBITDA. In terms of EBITDA, the enlarged business would have generated $464,000,000 in 2020. To. As you can see in the waterfall chart, this reflects the R156 1,000,000 from 888, together with the contribution from the 3 key business the segment of William Hill, less its corporate cost. We expect significant enhancement to our adjusted EPS in the 1st year to probably over 50%. From a financing perspective, we have committed funds to complete the transaction. To provide a more favorable mid term capital structure, we plan to raise approximately $500,000,000 in fresh equity at the appropriate time, to, which would give us pro form a leverage under 4x3 synergies. To Given the strong cash generation profile and our expectation to reduce leverage to below 3x in the medium term, we currently have no plan to change our dividend policy, to which to remind you is targeting for 50% payout of net profit. To Moving to Slide 20. On Slide 20, we show the new makeup of the enlarged online business by geography and product. To The combined business will be well diversified with about half of the online revenue coming from the UK and gaming and betting split of around 70 to N30. The combined business will have really strong position in the most attractive regulated market with over 80% of online revenue in 20 to the company, coming from regulated and taxed market. Turning to Slide 21, to The combination significantly enhance our scale and this step change will enable us to generate significant synergies. To We expect cash synergies of $100,000,000 per year by 2025 with the gradual phasing of these synergies to With a little over half of this in year 2, reflecting our plan to focus on business momentum and take time in consideration to ensure we capture the best product and technology from each of the businesses. We expect the cost to achieve these synergies to It is important to note that the company. Staff cost synergies are not a material part of the plan. Most of the savings are enhanced scale driven and coming from cost of sales, Marketing and Technology. One of the most important attractions of the William Hill business is the strength and depth to the management team and employees, and we are really looking forward to working with the William Hill team to position the enlarged business for growth. To With that, I will hand back to Itay for some concluding remarks. Okay. Thank you, Yurif. And to Slide 22 and just to conclude, this is a really, really attractive transaction for 88 and William Hill International to and it will drive shareholder value as well as positioning the large business for future growth opportunities. To the operator. It creates a more diversified business that is a leader in regulated markets with increased scale, huge product and technology capabilities to the company and its financially highly attractive combination. With that, I'll be very happy to take some questions now. To to. We will take our first question from Ed Young of Morgan Stanley. Please go ahead. To Good morning and congratulations on the deal. My first question was around William Hill's momentum, to Maybe one you could just help me with very quickly. The market share you've given on Slide 6 seems just sort of increasing from to 9 into double digits and the market shares you gave on number 12, suggests it's 8%. So if you just clarify if I'm just misreading that to understand it. But to The general message you seem to be giving is that market share is increasing, that growth is really inflecting at William Hill. So could you just talk a little bit about to what you've found in the due diligence process, I guess, do you think gives you the confidence that it seems like it's already on the right path? To Number 2, perhaps you could just elaborate on technology platform plans. I see in the synergies you said consolidating operations and back office to common platforms where possible. I think William Hill has something like 3 platforms at the moment. Are you going to move them on to your platform? Maybe to some color around your initial thoughts perhaps on that plan. And then the final question, there's various elements of William Hill U. S. That have been driven from to the international business, in play training from leads, some bits of technology. Can you just give us some idea about where that sits? Is that all being to fully cleaved off now or is there some sort of service agreement to maintain that in some sort of transition? Thanks. To Yes. Thanks, Ed. I'll take the first two questions and hand over the third one to Jorrit to about how we plan to support Caesars in the transition. So first of all, about William Hill momentum, I think we were pleasantly to see the business performance from the going out of last year coming into this year. To And I think this is a result of the investment that the William Hill team did in their products and their offering to specifically in the U. K, but in other regions in the last 24 months. I think that they're seeing a similar cycle, which we've seen in our business, which is to you. You invest in product, you give customers great product experiences and they respond positively. To It's not surprising that they're having a good momentum, that a company with probably the best to a marketing campaign around the euros carrying the almost official anthem for the U. K. In their campaign to It resulted with really good results of good marketing, good product, good customer satisfaction leads to momentum to We think that's where the business is. So hopefully, in the beginning of a product cycle, what we learned during the process is they also to have been working on extensive future product technology enhancements in order to continue that drive across different areas of their business and we're planning obviously to support that in order to enable growth in that business going forward. To In terms of the tech platform, indeed, like I said, William Hill have various technological components, some legacy, some completely new. 888 to the company. Basically a new set of products in casino, poker and sport that we recently launched to And very well run back end and Pam. So basically, to The way that we look at it, we have really great components on both sides for gaming and betting. We have the best operational teams here. It's a combination of best in class gaming with best in class betting and that's exactly to what we would like to create from this combination. Ultimately, we will have one platform supporting the best in class gaming products, to best in class sports betting products to all of our customers globally. That's the aim. We're now entering into a 6 months period of completion. We will be working very closely with the teams there on planning out what that will look like in the future, to But that's the end goal of this combination. And regarding these service agreements and support, we will give to Cesar Told. I'll hand over to Yuri to answer that one. Yes. Ed, so with regard to the separation, to So there is a coherent plan already in place for the separation of William Hill International and William Hill U. S. This is already in execution. We expect this plan to be almost fully executed by to but there is an assumption that there will be some left over, which we will need to service Caesar to In order to complete all these processes under a transitional service agreement, which is part of the set of agreement that we signed with Caesar. To Understood. Thanks. And then could you just help on the detailed question? Sorry, just clarify, if to If I look at Slide 6, the market share starts at 9% and goes up to 11% and then 12% by the end of 2020, to 14 by June. If I look at Slide 12, I think you said it was, you're saying William Hill's market share during 2020 was 8.3%. I just don't know how to reconcile those figures. What's different? What's the right message or level to think about? Thanks. To So I think the market share the reason for the market share I think is what I mentioned before the combination of the new products to marketing, but I think Juan can elaborate specifically on those figures. Sure. Yes, in terms of the technical differences, to The 2020 figure reflects the full year annual figure for the entire market. The figures on Page 6 that you see going up to the company. Those are based on the monthly gambling commission stats, which represent around 80% of the market to from those operators that submit those monthly stats. So it's William Hill's share of the operators that submit stats on a monthly basis. So it's not total market, but you can see the trend there being very positive. Okay. Thank you. To thank you. We take our next question from David Broughton of Goodbody. Please go ahead. To Good morning, guys, and congratulations on the deal. And just a couple of questions for me. Firstly, on retail, to Do you think that you need to further rationalize this data? Obviously, it's downsized a lot in the last kind of 18 months, but do you think there's any further rationalization needed there? To And just also on retail, what gives you guys confidence that retail will kind of return to close to kind of pre COVID levels given the online shift that to seen over the last kind of 15 months. And that's kind of on retail. Just then on the U. S, given the kind of increased scale of to the group. Does this kind of give you scope to invest higher in the U. S. Over the medium term? And then just finally on kind of brands, how do you see the brand the portfolio in different markets. Will it be dual brands in each market or any kind of changes you make for that? Thanks. To Okay. So thanks for the question. So I'll start with retail. In general, we think the retail, to it doesn't look like it needs further rationalization. Retail went through a few optimization to the changes in VoIP during COVID. And I think now the retail to is well positioned with very good locations across the U. K. The scale is good. It's around 1400 shops. To They've kept the profitable and best locations, Chok. So at the moment, we don't see any kind of need for change. To. There's a really professional team managing the retail there and we will let them continue manage that business to and expand and execute some of the technological projects that they've been working on for the last couple of years. Again, they have some very interesting plans there in terms of technology in retail and delivering better omni channel options. To So the plan is to continue and let the retail operate. And to In terms of the trends of retail, what we've seen since the U. K. Market has to opened and released restrictions actually retail went back to the existing retail shops to nearly or over normal of what they saw before COVID and again this reflects to the high quality of the shops that remain. So for now, retail will continue running to as planned and continue executing on the very interesting plans that they have in place. Regarding the U. S, to Indeed, we see this as kind of supporting factor. To the operator. The scale that we've been speaking about, we were looking to make a significant transformational M and A in order to reach scale. To Scale also not only enhances our ability to increase our margins, but it also enhances our options to deal with all the opportunities that are out there in the market. One of the biggest ones is the U. S. And this combination will create to significantly more free cash flow for the business to invest in different areas and the U. S. Is one of the areas that we're planning to invest in. To Again, we have our plan. We're going to stick to our plan of rollout into various markets, sports betting markets in the U. S, to This will definitely help us support those expansion plans while also doing other opportunities that we have in Europe to like taking a nice share of the sports betting market in Germany, going into Netherlands, to Canada that's opening. So there's a lot of opportunity and scale and the group of talented people that are joining to. 88 will only help us achieve these ambitions. Last question regarding the brands. To So essentially, we're buying one really amazing brand in the UK, household name, to great heritage and not only great recognition, but great in terms of brand perception, loyalty. So to Obviously, we're keeping and we're going to keep investing in the William Hill brand. In terms of brand strategy in the different markets, we will to Like we're going to pick and choose technology and we're not going to operate all brands in full course in all markets. We'll obviously to decide which are the right brands in each market that can create the best performance, best returns and they will be the leading brands and we might keep the other brands as what we call more tactical brands in the different markets to kind of benefit from long tail market shares, to The investment in each one of the markets is going to be on the core brands. In the U. K, just for an example, William Hill to is probably one of the best if not best known betting brands 888 Casino and Poker to our probably the best gaming known brands, so we will continue to invest in all of those brands in the UK. To In other markets, we'll make the right selections. Perfect. That's very clear. Thank you. To thank you. We take our next question from Richard Stauber of Numis. Please go ahead. To Hi, good morning. Hope you can hear me and again congratulations on the deal. First question, again, going back to sort of Slide 6 about momentum in William Hill. To In Europe, it looks like the growth is slowing down over the last few quarters. Could you say what that's due to? Is that from sort of Germany, for example? To The second question I had is on leverage. I think you said guiding to about 4x or less than 4x net to EBITDA at completion. In terms of assumptions around impact from any to any changes from the gambling review, anything sort of on that? And also, typically, when you to In recent times, in M and A, when you acquire a target, there's often responsible gambling measures, which aren't quite aligned with your own. To is there any risk to any of William Hill's revenues you think for maybe aligning its responsible gambling measures to your levels? To Thank you. So yes, so I'll answer the first question about the momentum in the arrears. We'll take to the question about leverage and the Gaming Act in the U. K. But in general, yes, indeed, the momentum in the Industry and this is not an 80 day to William Hill in Q3. Obviously, there was a level of seasonality. We also saw that reflected to the numbers that came out of the UKDC, which if I'm not mistaken, it's about 17% to the Q1 of 2019. Reduction in revenue entering into the summer. That's a natural seasonal effect that we to the business that we're familiar with. I think the exception was probably last year because of the unusual situation, to But we are seeing a similar seasonality and we expect that seasonality to go back to the increased activity towards Q4 as we see in the past and the normal years. To Okay. So with regard to the leverage, so we are expecting post the equity raise to be below 4x to the next question. We are taking into consideration that there will be synergies that will be kicking in to And also we consider the potential impact of the gaming app and we'll still have a clear path to be below 3x to Within short to medium terms, I would say this short to medium terms is about 18 to 24 months. To With regard to the gaming app in general, so obviously, this was part of the consideration that to when we value this business, we shared a similar view to the management of William Hill on how the gaming to that can impact the market here in the U. K. And we I can tell you again that this was part of the consideration and we are aware of this impact and the timing that it might kick in, to Which we don't think will happen in early 2020. This is probably more an event to the end of 2022, beginning of 2023. With regard to the responsible gaming platform and philosophy, to I think that what we saw during the diligence that we are actually sharing very, very similar approach to Responsible Gaming. So to I wouldn't think that combination of the 2 businesses will have any impact in terms of Responsible Gaming on the businesses to to. Thank you. And we take our next question from Simon Davis of Deutsche Bank. Please go ahead. To Yes, morning. A few from me, please. Firstly, with the U. S, can you just clarify what Caesars is doing in terms of platform? Are they going to take on any to components of the William Hill platform, where they're going, is it alone? And are you able to use the William Hill brand in the U. S. Post completion of the deal? To Secondly, what's the future of the Mr. Green brand? Not a lot of reference to it. Do you think that will be phased to out as part of your brand rationalization. And finally, you talked you haven't really talked about revenue synergies, but There must be significant opportunities to run the business better and drive synergies. Can you talk a bit about the potential quantum of those? And do you see them as to Okay, Simon. So I'll take the first three questions and I'll hand over to Juan regarding the revenue synergies. To So first of all, U. S. Platform, I prefer you refer that question of Caesars future plans to them. They have been developing a platform with the William Hill team. We do have an agreement with them, to Which I can't exactly share, but they have a very clear technological plan for the U. S. Market and to I think it's best to ask them about what that will look like. As I said, we obviously have our own the company's technological platform. The deal includes the IP and all of the technological assets that William Hill International has to the operator and we're planning to take the best in class of both tech stacks and deliver them to the consumer. That's the end game of this combination. Regarding William Hill brand in the U. S, we do not have the right. To So we do own the William Hill brand globally, but William Hill, but Caesars has the right to use it in the U. S, and we will not be using to that brand in the U. S. Vistra Green actually is definitely a brand that we like. We were to 88 was in a process competing with William Hill actually to acquire Mr. Green a few years ago. To So we definitely see that as a strong brand specifically in areas that we have been less focused on to like the Nordics and Northern and some other Northern European countries. We definitely plan to keep that brand. I think it was presented at the beginning of the presentation and it's one of the core assets in gaming on the Europe ex U. K. To part of the business. Regarding revenue synergies, I'll let Bob take to Sure. Yes, I mean, look, we do see opportunities for revenue synergies here. I guess some of it is what I was just describing to with this suite of brands that we've got which resonate in different markets with different consumers, we can really optimize the efficiency of the marketing and make sure we're deploying to our marketing resources where we're generating the highest return. So if we get that right, and I think with the systems we've got in place and with the technology and with the measurement, to we will get that right and we'll enhance the return on that marketing investment. Thinking of it from a kind of player perspective, to Again, it's I and Ulrik have been talking about a lot of sort of shared visions here in terms of the focus on creating great products, to which are safe products and which deliver great experiences to customers. You know, AT and T is the best out there in terms of gaming products to With some really outstanding content by 3rd party and also the Section 8 internal exclusive content that we've got. To William Hill, Heritage is a sports betting business, some fantastic product there. We've got some great stuff in 888 Sport, but there's an even broader range of to the products and content within the William Hill Sports Betting Business. So bringing those 2 excellent complementary products together to and provide them the best range of content and offers with the focused marketing plan across those brands where they really resonate. To That does unlock quite a lot of revenue growth opportunities allowing the combined business to get into an even stronger market to thank you. And we have a follow-up from Ed Young of Morgan Stanley. Please go ahead. To Hello. Just a quick follow-up, if that's okay. If I look at the William Hill corporate cost going back before last year, to it's €46,000,000 in 2019. If I look at your synergy number €100,000,000 I guess €50,000,000 of that's CapEx. To Other overheads is only 23%. So it seems like quite a small percentage of that. And equally, your 22 synergies of €10,000,000 also to quite conservative phasing. So should I take from that that there is a load of very necessary cost in corporate around Say for gambling, other bits you don't want to touch? Or is it possible to think that you're being a little bit conservative there in terms of how you're looking at both the phasing and the quantum of synergies when it comes to things like corporate cost and overhead. Thanks. To We take the view that in the scale of the 2 businesses, this is more like a merger to And therefore, it's not about synergies via cutting costs. That's why you don't see you're right, there is no to the next question. Massive amount of synergies coming from cost cutting and we will look forward to to combine these businesses and actually to utilize both strength of each of these businesses to create to a more growing business rather than to be focused on just synergies that coming from cutting the cost. To And yes, if there is a chance that the synergy will be above $100,000,000,000 the answer is yes. To And in terms of the aspects around the corporate cost, just to be clear, we split out the figures to the back of the deck there. What you see in there is the perimeter of the entity that we are buying. It doesn't include the to PLC costs and those kind of elements. So the central costs here are more combined operational cost of service across the the 3 segments of the business. So there's not a big kind of PLC cost base to remove here. That's been done. To Okay. Useful. Thank you. Thank you. It appears there are no additional questions from the phone. I will now turn the call back for questions from the webcast. Thank you, Anna. We have our first question on the webcast to Pete Dhalla from Kite Lake. Will the William Hill bonds or other leases cause an issue if you were to divest parts of the business? To. It seems there will be natural buyers and this could help facilitate plans for delevering. To So, first, with regard to the bond, so as part of the deal, we are assuming the bond to And we will deal with that. We have the structure to deal with the bond whether they stay or we will to Based on the market price, we need basically to pay them off. So this is not an issue. To With regard to the retail, I think Itay was clear that we see that as an important part of the business that we are acquiring. To And we are not going to use O2 plan for the retail anything else, but to good performance that with the cash generation that it will generate to use that to deleverage to the overall debt that we will have in our balance sheet. Thank you. Our next question is to 888 is a leading online betting operator. What does this acquisition mean for all the retail shops William Hill has around Europe? To also what would be the strategy for them, close down or expand the company into the retail segment? To I think we addressed these questions before. We're planning the retail for William Hill is named in the UK to And we plan to keep that and we see that as one of the important assets that we're acquiring here. To Thank you. Our next question is from Bridie Barrett at Stifel. Kyle, can you give us a sense of what capacity the UK estate is trading? To And secondly, what will be the approach to managing multiple brands. Can you be more specific on the plansadvantages of doing this? To Yes. So I think I gave an indication of the state of the retail shops. To And I reported that after opening of retail in the UK, they are trending in a similar to what they were before COVID. So we're happy with where they are. It looks like their customers that to Like the retail experience, I'll go back to the retail experience. Again, the shops are very well located and well maintained. And therefore, to It seems like that trend is a stable one at the moment. Regarding the brands, I also addressed that and we are planning to operate a multi brand to the organization, putting the best brands in front of the consumers in the right markets. It doesn't mean that we will operate and focus on the whole brands in to all the markets will just put the right ones and try to be in front of the consumers and reach some to Thank you. Our next question from Iva Jones of Peel Hunt. To How has retail been performing in 2021 when open relative to assumptions for normalized 2020? To So, yes, I think these questions have been coming in before because we're answering the same question. So maybe we'll skip to the next one. To Absolutely. The next question also from Iva Jones is, will you change the way you operate 888, particularly in the UK to the operator for the rest of this year. Are you able to engage fully with William Hill ahead of acquisition? And will you have a detailed plan to execute by the time of completion? To So first of all, yes, until completion, William Hill, the existing William Hill to William Hill team led by Ulbrich will continue running the business as per their plans. We will be able to engage with them to and create plans for what the future business will look like. We are planning to to speak, advise, consult and work together with them on the plan. Obviously, they know the William Hill business better than everyone else. They've done a great job in bringing it to where it is today to this new growth trajectory. So we will create the plans together with them. To And obviously, the more advanced we get with the plans, the faster we will be able to realize future synergies. So that's certainly the plan. The 88 business will obviously continue running as it has up till now in UK and Europe during this process. To Thank you. There appear to be no more questions on the webcast. So please may I hand back to you as the speakers for any closing remarks. Yes. So thank you very much, everyone, for taking the time to join this call on such a short notice today. To It really is a very exciting day in 888's history, but I think it's very exciting for actually both companies to, because this combination is going to create a lot of opportunities and significantly enhance the strategic position to both companies, both entities and create opportunities not only for the companies to grow, but for people to grow within the enlarged business. To and I'm looking forward to working with the William Hill team led by Ulrich in planning what the future will look like for this combined business. To and I think the future will look very bright. So thank you very much for joining and have a good day.