888 remains on course to meet full-year expectations
Growth trajectory continues from Q3 into Q4 as analysts predict a "challenging" 2014
Gibraltar-licensed operator 888 is “confident” it will fulfil full-year financial expectations, the company announced in a pre-close trading update this morning.
The operator said the KPI trends reported in October’s Q3 results, in which it reported 2% year-on-year revenue growth, have continued into the final quarter of the year.
888, led by chief exec Brian Mattingley (pictured), has enjoyed a stellar 12 months, most notably managing to launch in three US states, while also securing a hat-trick of awards at the eGaming Review Operator of the Year Awards last month.
However analysts are predicting tougher times ahead with EBITDA forecasted to be flat during 2014 while the introduction of the UK point of consumption (PoC) tax late next year is expected to hit bottom line in 2015.
“2014 will be challenging as the group adapts to an ever more regulated landscape, loss of B2B bingo revenues and FX headwinds. As such we forecast EBITDA to be flat year-on-year,” Simon French, analyst at Panmure Gordon, said.
“In 2015 the group will suffer from the impact of the first full-year of UK PoC. However the Group retains upside from further progress in the US,” he added.
888 recently sharpened its focus on its sports betting offering in the run up to next summer’s football World Cup in Brazil. Earlier this year, the operator signed a deal with sportsbook provider Kambi and earlier this month launched a multi-platform advertising campaign.
The Group’s share price was up 1p to 162p this morning following the trading update.
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