888 sees revenues, earnings 'moderately' ahead of previous expectations
Online gambling company 888 said on Thursday that full-year revenues and earnings were set to be "moderately" ahead of its previous expectations following a strong performance in December.
In an update ahead of its results for the year to the end of December 2020, the company said that both revenue and active customer numbers in December represented all-time monthly records.
"As a result, the board now expects the group to report revenue and adjusted earnings before interest, tax, depreciation and amortisation for the period moderately ahead of its prior expectations," it said.
888 put the the strong trading down to increased new customer acquisition that started at the end of 2019 and continued throughout 2020, the positive impact of new products launched during the period and an acceleration in the shift from retail to online services seen across multiple consumer-facing industries.
"Whilst 888 has entered 2021 with good momentum, the board remains mindful of possible headwinds over the coming months including macro-economic and regulatory uncertainties in certain jurisdictions," it said.
"Notwithstanding, the board remains confident that, with 888's outstanding product proposition, advanced technology and diversification across global regulated markets, the group remains well positioned to deliver further progress."
Canaccord Genuity said: "Having upgraded adjusted EBITDA forecasts by 11% in early December we upgrade again today by a further 2.4% to $153.5m on the back of a 2.5% revenue upgrade.
"888 enters FY21 with strong momentum and the recently announced long-term market access deals into three further US states will help to augment 888’s presence in the growing US market. At this stage, we leave our outer year revenue and EBITDA forecasts unchanged, reflecting the new regulations in Germany, increased US investment and the uncertain macro backdrop."