Lockdowns, Euro 2021 a winner for 888 Holdings

Online betting group 888 Holdings reported record interim profits and lifted annual guidance driven by a spike in volumes during Covid lockdowns and the European football tournament.

The company on Wednesday reported a 39% rise in adjusted core profit to $97.4m for the six months to June 30. Revenue increased 39% to $528.4m.

Pre-tax profit rose to $57.9m from $50.9m a year ago. An interim dividend of 4.5c per share, up 41%, was declared.

888 had said it witnessed more bets being placed on England-Italy final during the Euro tournament than on any other sporting event.

However, revenues over the past two months rose by mid-single digit percentage compared with last year as the reopening of retail and leisure venues from lockdowns led to a slowdown in the rate of growth.

"The board remains mindful of the tougher comparables in the upcoming fourth quarter, a period that enjoyed an exceptionally strong performance in both betting and gaming revenues during 2020," 888 said.

AJ Bell investment director Russ Mould said achieving growth in the remainder of the year "could be a tough task for 888".

“Where 888 has fallen a bit behind its rivals is on taking advantage of opportunities across the Atlantic as sports betting has been legalised across several US states," he said.

“A partnership with media brand Sports Illustrated agreed in June doesn’t feel like it has the heft of the ventures other UK betting firms have agreed with heavyweight casino operators.”