As sports events return

888 Holdings forecasts earnings significantly ahead of expectations

"We have seen a better-than-expected customer reaction to the gradual return of sports events during recent weeks and, during June so far, our sport revenue run-rate has been ahead of June 2019," 888 Chief Executive Officer Itai Pazner said.
2020-06-26
Reading time 1:06 min
The online gambling firm said its average daily revenue so far this year has been 34% higher than last year, adding that it has benefited from a structural shift towards online services.

As sports events returned and its poker business performed well, 888 Holdings on Friday forecast full-year adjusted core earnings significantly ahead of expectations.

The company said its average daily revenue so far this year has been 34% higher than last year, adding that it has benefited from a structural shift towards online services.

Gambling companies have seen a mixed impact from the coronavirus pandemic, which shut down one big cash cow - competitive sport - globally but encouraged customers to play more poker and bingo to relieve boredom, Reuters reports.

“Lockdown has been negative for gambling revenue overall, but it has clearly accelerated the lane change to online. 888, in the race-tuned online casino, has been well-placed to push down on the marketing accelerator and take the lead,” Peel Hunt analysts said.

Shares in the FTSE-250 company jumped 15.6% by 0837 GMT to a seven-month high of 174.4 pence and topped the midcap leaderboard.

Bookmakers, including 888 and William Hill, have also been helped by the return of horseracing as well as UK’s Premier League and Germany’s Bundesliga in recent weeks.

“We have seen a better-than-expected customer reaction to the gradual return of sports events during recent weeks and, during June so far, our sport revenue run-rate has been ahead of June 2019,” 888 Chief Executive Officer Itai Pazner said.

The company had flagged growing risks of gambling-related harm in May as more stuck-at-home Europeans were betting online amid nationwide lockdowns to curb the spread of the coronavirus.

Leave your comment
Subscribe to our newsletter
Enter your email to receive the latest news
By entering your email address, you agree to Yogonet's Condiciones de uso and Privacy Policies. You understand Yogonet may use your address to send updates and marketing emails. Use the Unsubscribe link in those emails to opt out at any time.
Unsubscribe
EVENTS CALENDAR