888 upgrades 2020 profit forecast as daily revenue climbs 34%
London-listed online operator highlights poker growth as full-year 2020 expected EBITDA increases
888 has said it expects full-year 2020 financial results to be “significantly ahead” of its prior expectations, buoyed by a 34% year-on-year rise in average daily revenue during H1 2020.
Revealing its pre-close trading update for the period January 1 to June 23, the operator said its average daily revenue had leapt by 34% when compared to the same period in 2019, due to increased levels of customer acquisition during H2 2019 across several regulated markets.
888 also said its operations had benefited from the “structural shift” towards online gambling, which had accelerated due to the coronavirus pandemic.
The board anticipates a significantly higher adjusted EBITDA outcome for 2020 that it previously expected.
Although, 888 cited possible “headwinds” caused by the pandemic, which it highlighted as potentially affecting momentum during H2, but said it remained confident that the business was “well positioned” to deliver further progress.
888 CEO Itai Pazner paid tribute to 888 staff working during the lockdown
888 CEO Itai Pazner welcomed the H1 2020 results, reaffirming the board’s belief that this will drive better than expected performance in the firm’s adjusted EBITDA during the remainder of 2020.
“We have delivered a particularly encouraging performance in poker which reflects the strength of our product and ongoing focus on providing a safe and entertaining destination for recreational poker players,” said Pazner.
“Whilst sport has been impacted during the year to date by the cancellation of events, we have seen a better than expected customer reaction to the gradual return of sports events during recent weeks and, during June so far, our sport revenue run-rate has been ahead of June 2019,” Pazner added.
He also paid tribute to 888’s global teams, pointing to their “fantastic flexibility and commitment” in adapting to the challenges of working during Covid-19.
“I am pleased to report that we are now in the early phases of enabling some of our teams to return to our offices whilst continuing to ensure that we prioritise their wellbeing and follow all relevant guidelines,” Pazner added.
888 shares shot up 15% to 174.2p ($2.16) on Friday following the release.