24th Mar 2020 10:35
(Alliance News) - 888 Holdings PLC on Tuesday expressed confidence going forward amid an increase in demand for its services.
The gambling company said strong momentum at the end of 2019 - which culminated in revenue in December 2019 at an all-time monthly record for 888 - has continued into 2020.
During the year-to-date, the company said it has traded well and in line with expectations, with average daily revenue 18% above the prior year.
888 Holdings highlighted continued progress in its Casino and Sport verticals, with each of them recording average daily revenue 24% ahead of the prior year.
In addition, new customer acquisition across the company's B2C business has been 20% higher year-on-year so far in 2020, with B2C average daily deposits up 32%.
Looking ahead, 888 Holdings said the postponement and cancellation of sporting events will hurt its Sport vertical, which accounted for 16% of revenue in 2019.
More positively, the company noted an increased customer activity in its Casino and Poker products that might, in part, compensate for the sports betting disruption. However, in the event of a prolonged period of global macro-economic uncertainty, 888 Holdings noted that it is possible that consumer spending across its online gaming product verticals may also be hurt.
888 Holdings said it continues to see a number of significant growth opportunities for the company which it is confident of progressing during 2020 and beyond.
"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.
"As a purely online operator with diversified brands across product verticals and geographies, a strong balance sheet with USD99.5 million of cash and cash equivalents at the 2019-year end, and a proven track record of delivering operational efficiencies, the board is confident in 888's ability to manage these challenges."
888 Holdings shares were trading 32% higher in London on Tuesday at 110.50 pence each.
By Evelina Grecenko; [email protected]
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