"Should severe disruption to global sporting events continue until September, the board estimates a potential impact on group earnings before interest, tax, depreciation and amortization in the current financial year of up to high single digit millions of dollars," the company said in its statement Tuesday.
888 said the overall business had performed well in the year to date and was in line with the board’s expectations, with average daily revenue up 18% on the comparable prior year period.
In casino and sport, there has been a 24% average daily increase compared to last year. Moreover, New customer across the company’s B2C business has jumped by 20%. B2C average daily deposits are also up by 32%.
FY 2020 outlook
The Board is monitoring closely the spread of COVID-19 and 888 is following all government and local health organisation guidelines in order to keep its global teams safe and healthy. While it is unclear how this fast-moving situation will evolve over the coming months, the postponement and cancellation of sporting events will impact 888’s Sport vertical, which accounted for 16% of revenue in 2019.
"There is currently evidence of increased customer activity in the Group’s Casino and Poker products that might, in part, compensate for the sports betting disruption for a period of time. However, in the event of a prolonged period of global macro-economic uncertainty, it is possible that consumer spending across the Group’s online gaming product verticals may also become impacted. Should severe disruption to global sporting events continue until September 2020, the Board estimates a potential impact on Group EBITDA in the current financial year of up to high single digit millions of dollars," said the company.
The Board recognises that, with people spending more time at home and with potentially increased stress from economic uncertainty, 888’s vigilance on safe gambling and preventing gambling-related harm is even more important than ever.
888 Holdings shares were trading 32% higher in London on Tuesday at 110.50 pence each.