888 Holdings issues profit warning due to coronavirus

Online gaming company 888 Holdings said on Tuesday that if severe disruption to global sporting events continues until September, core earnings will take a hit of "up to high single digit millions of dollars".

The group said the strong momentum at the end of 2019 has continued into 2020. In the year to date, it has traded "well" and in line with the board's expectations, with average daily revenue 18% above the comparable prior year period.

The performance has been underpinned by continued progress in the casino and sport segments, each recording average daily revenue 24% ahead of the previous year.

Nevertheless, it said the postponement and cancellation of sporting events will impact its sport vertical, which accounted for 16% of revenue in 2019, while consumer spending across the group's online gaming product verticals may also take a hit. This may be mitigated somewhat "for a period of time" by activity in the casino and poker products, which has risen recently, it said.

888 said that as a purely online operator, with diversified brands across product verticals and geographies and a "strong" balance sheet, it is confident in its ability to manage current challenges.

"Underpinned by the strength of 888's technology, its growing customer base and the group's talented and committed teams, the board continues to see a number of significant growth opportunities for the group which it is confident of progressing during 2020 and beyond."