888 Holdings sees FY profit slightly ahead of expectations

Gambling group 888 Holdings said it expected adjusted annual core profit to be slightly higher despite higher costs and regulatory changes.

The London-listed company added that its second quarter of 2021 was slightly ahead of expectations as total revenue jumped 10% to $257m on a constant currency basis.

“For the second half of the year, the board remains mindful of the potential impact of greater than normal seasonality in the summer post Covid-19, retail and leisure venues reopening across international markets, and the previously disclosed expected impact of regulatory and compliance changes, which are weighted towards the second half of the year,” 888 said on Wednesday.

It said that since May 17, when UK retail and leisure venues reopened, average daily revenues in the UK had fallen by around 20% year on year, with poker and bingo turnover also lower.

“The strong momentum from the first quarter of 2021 continued into the second quarter, albeit with the year-on-year growth rate moderating in light of stronger comparables from the prior year,” said chief executive Itai Pazner.

The UK government is pressing ahead with a plan to end Covid restrictions on July 19, despite soaring case numbers, which could see a reduction in revenues as people spend more time socialising outdoors and less gambling online, although the return of live sporting events could offset any declines.