SBC News Voice of the Sports Betting Industry
Online gambling group 888 Holdings Plc has predicted that COVID-19 related disruptions will have a ‘single $ digit million impact’ on the firm’s 2020 EBITDA performance.
Yesterday, 888 was forced to delay publishing its 2019 results, abiding with an FCA order which sanctioned a two-week moratorium on the publication of results by listed companies.
Updating investors this morning, 888 stated that 2019 momentum had continued into the early months of 2020 trading, in which ‘the group has traded well and in line with the board’s expectations with average daily revenue 18% above the comparable prior year period’.
Prior to the COVID-19 crisis, 888 detailed strong topline metric growth across its B2C casino and sports verticals, with each segment reporting a 24% increase in daily revenues, citing increases in player acquisition (+20%) and average daily deposits (+32%).
Mirroring industry counterparts, 888 governance stated that it is hard to forecast full-year guidance operating under a period of ‘global macro-economic uncertainty’.
COVID-19’s postponement/cancellation of sporting events will primarily impact the firm’s smaller 888Sport unit, which generated 16% of the group’s revenues during 2019.
888 explained: “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.”
Operating in uncertain times, 888 emphasised that the group will maximise vigilance of safer gambling procedures across its verticals.
Closing its statement, 888 detailed confidence in navigating COVID-19 headwinds as a ‘purely online business’ with a diversified geographical spread, underpinned by full ownership of its proprietary technologies across its brand portfolio.
