Q&A: Per Widerström on delivering 888’s new value creation plan

Per Widerström cut a relaxed figure in his first results call since becoming 888 CEO back in November. The former Fortuna Entertainment Group boss has made his stamp on the operator already, drafting in seven new C-suite heads and unveiling a value creation plan that management hopes will fundamentally transform the group. Widerström has also put forward a new name for the group – evoke – to “better reflect the strength of the group’s multi-brand operating model”.

Speaking to EGR the morning of the release of the group’s full-year 2023 results, together with an explanation of the new value creation plan, Widerström, fresh off of handling analyst questions, delves into his thinking behind the strategy shift. And with a strategic review of the US B2C business having been sanctioned, a focus on core markets (UK, Italy, Spain and Denmark) is at the forefront of his mind.

Midway through the conversation, CFO Sean Wilkins, who joined 888 from Romanian firm Superbet to form part of the operator’s new-look C-suite, provides an insight into the building of the top team.

It was a “proposition that was hard to say no to” Wilkins says, as he explains there is an historic opportunity to do something amazing in the sector. “The opportunity is enormous,” he adds.

It is that opportunity to add value that Widerström and his team will be looking to seize over the coming months and years.

EGR: Good to speak, Per. You joined as CEO back in October and have now laid out a new value creation plan to shift the business. Firstly, why did you decide to join 888?

Per Widerström (PW): I had the opportunity, before officially starting in mid-October, to have eight weeks across most of our office and meet a lot of great people. That allowed me to have a head start from day one. It became clear we had a tremendous foundation with the brands and people we have. However, the level of performance was not what I would have expected.

The improvement opportunity that I have seen, together with my team, is very much reflected in the value creation plan which clearly delivers substantial value. The way our customer value proposition can be reflected in our brands.

We have a great proprietary technology and we have a substantial opportunity to further efficiencies via AI and automation. Coming on board, I had great support from the board and management team from day one to announce the plan we have.

EGR: You mentioned during the analyst call that this strategy is one you’ve used before when at Fortuna Entertainment Group. Would you describe 888 as a unique situation or a business that can have a blueprint applied to it successfully?

PW: One needs to always be humble in any transformation you embark upon. However, my experience, irrespective of the sector, is that the model I have adopted multiple times both as CEO of Fortuna and when I was working in financial services, has a clear view on what success looks like for us.

[It is about] how we are delivering, having absolute laser focus on how to win the customer, how we win in the marketplace and how that translates into the value creation plan. That is a model that works irrespective of sector. When it comes to Fortuna, there is a lot of similarities. When it comes to the value creation plan, it is very similar.

The concept of course, varies a lot of. From a customer management perspective, there is a different starting point.

When we look at omnichannel there is a lot of learning I can bring. Let’s be clear, it is about data and understanding the context here. One of the key underlying critical successes is having a team that know the market and sector. I feel very confident in the team I have.

EGR: On building out that team, you’ve brought in seven ExCo members since October. How does the pitching process go, to bring people onboard for the challenge?

PW: When you are embarking on a value creation journey that is based on the resetting of a business and a fundamental transformation, leadership is absolutely vital. From that perspective, this is a leadership team that knows what works. Beyond that, they have delivered value creation. I am delighted to have the team I have now. People like Sean [Wilkins] who has 17 years of experience. We have Ian [Gallagher] and Rik [Barker] when it comes to product and tech, they are top tier when it comes to transformation in this sector.

We have Mark Kemp joining who has a solid track record and Stephen Sheridan from the financial services sector. I am so happy with this constellation of people. There was full support from the board. We have a very solid and high-quality leadership team in place.

EGR: Looking at markets, the group has communicated it is reviewing its US B2C operations. In hindsight, would you describe venturing into the US as an error?

PW: I think we have a tremendous opportunity to drive value. That is the reason I joined 888 and built the team I have now. We have a situation that became very clear on the back of the value creation plan that the US B2C business did not qualify for the value creation plan thresholds.

So, that is why we have put it up for strategic review. Our collaboration with Authentic Brands Group in terms of the Sports Illustrated brand has been very positive. As a business we have other opportunities to drive value in our portfolio, and that is what we are going to focus on.

EGR: Can you shed further light on the US operations as they stand given the low market share?

PW: When it comes the B2C we are clear about that. We need to set up a strategic review. When it comes to the US B2B in our co-operation with Caesars, we are very happy with the collaboration. At this point in time, we have no urgency in making any other decisions in relation to the US B2B business. We are committed to the partnerships we have.

EGR: During the analyst call, the group’s UK market share was pegged at around 10%. Do you expect this figure to increase over 2024?

PW: We are very confident about the UK business. We are confident we can bring this market back to growth. It is our number one market and part of our core markets. Across the core markets we are planning and expecting to outperform in them, including the UK.

We are lapping some challenges in terms of the compliance measures being taken when it comes to last year. The Cheltenham Festival was a massive success in terms of the uptake of customers. There is no doubt that we believe in growth of the UK business.

We had 750,000 actives engaged with our brands during Cheltenham. We had around 7.5 million bets across our channels. We are very confident in the UK business and the growth opportunity going forward. This is also on the back of improvements to our capabilities.

EGR: Finally, last week the Gambling Commission concluded its licence review into 888. How would you sum up your feelings now that chapter is closed?

PW: As we communicated on the 22 March, the licence review has been concluded without any penalties. We acknowledge that, we took notes of the review, and now we focus when it comes to the value creation plan and new strategy.

Image credit: Charlotte Hughes, Hudson Sandler