After strong first three quarters, 888 has revised its profit and revenue expectations for 2020, with the company expecting a 45% yield year-over-year.
888 Adjusting Profit and Revenue
888 Holdings has been reporting an optimistic outlook for its operations in 2020. The company has readjusted its revenue forecast owing to improving customer acquisition and successful transition from the brick-and-mortar segment to online products and solutions. Revenue and profit will exceed prior expectations, said Group CEO Itai Pazner in an earnings call today.
The company expects to achieve results that are roughly 45% higher year-over-year, with the lockdown and soaring demand for entertainment products proving a boon.
888 is expecting to see an 18.5% gain in EBITDA year-over-year, driven by expansion in key US states, including Colorado, Iowa and Indiana. Thanks to well-targeted partnerships, 888 will launch a sportsbook in Cripple Creek and Catfish Bend Casino in Iowa and Harrah’s Hoosier Park in Indiana.
Commenting on the company’s results, Pazner explained that first time deposits (FTDs) have been on the up and engagement with recreational customers has been in line with the Group’s targets, amid a broader restructuring towards the online segment.
The company’s shares are up by 2.4% or 279 pence by 1252 GMT, Reuters reported, and noted that this constituted a 70% gain in value for 2020 so far.
Yaniv Sherman, SVP head of commercial development, was excited to see 888’s bespoke technology enter the US market and deliver leading iGaming and sports betting products to B2B and B2C customers.
A sport betting and iGaming product by 888 is available in New Jersey only while the company runs poker products in New Jersey, Nevada and Delaware, with a card room’s launch still anticipated in Pennsylvania.
Some Reorganization in Europe and the UK May Be Necessary
While 888 has not said that it would withdraw from key markets, the company has been faced with a dilemma similar to the one experienced by many companies in the iGaming space today.
Europe and the United Kingdom have proven rather difficult in terms of regulation. Germany and the United Kingdom are now in the process of re-regulating their markets, and the quickly-expanding iGaming industry in the United States is an opportunity for 888 to grow further.
The company remains committed to investing in new markets all throughout 2021. While lockdowns around the world have benefitted 888 in terms of operations, the company remained committed to safe gambling and consumer protection, said Pazner.
More impressively, the company saw US revenue increase by 90%, posting a record-breaking number. 888 became an official National Football League (NFL) sponsor back at home in the United Kingdom and it struck a broadcasting deal for the English Premier League (EPL) with NBC.