By
Mike J. Davies
Editor in Chief at Casinos.US Updated: 03/23/2020
Mike is our Senior Editor and experienced gambling strategist. A former hockey player, he transitioned to the casino industry after finishing his B.A. in English. Blackjack systems, online casino guides, gambling terms, and more – Mike is familiar with all fine points of gambling.
Mobile Online Gambling, Photo by www.shutterstock.com
Online gambling operator 888 Holdings witnessed a significant rise in its shares recently, owing to more people moving to online gambling as an increasing number of casinos shut their doors amidst the coronavirus pandemic. The operator’s shares jumped more than 30 percent after it announced that the average daily revenue in 2019 was up by 18 percent.
The UK-listed 888 Holdings also said that this significant rise in shares might be able to compensate for the suspension in sports betting, claiming that the strong momentum it enjoyed towards the end of 2019 has carried on into the current year. It also noted that recent cancellations and postponements of gambling events worldwide would surely have a negative impact on betting revenues going forward.
The company added that it is still unclear how the situation will develop in the coming months as the coronavirus pandemic has disrupted industries and economies worldwide, and things are changing at a rapid and unpredictable pace. However, it did note that around 16 percent of its group revenue was accounted for by its sports vertical.
Investment Director at AJ Bell, Russ Mould, said:
The bounce could just be down to how investors’ relief that sport is just 16% of revenues. The share price had pretty much halved before today’s rally so a big drop in income was already factored into the stock’s valuation.
Earlier this week, 888 Holdings also announced that the release of its preliminary 2019 financial results had been delayed as per the request of the Financial Conduct Authority. The next day, the company released a “COVID-19 Trading Update,” where it gave investors an update on how the current global pandemic has affected business. It painted a very rosy picture of its own year-to-date performance.
It was after this announcement that the company experienced a rise in shares. In its update, the online gambling operator said that it was seeing “evidence of increased customer activity” in both its casino and poker verticals, which the management believes could compensate for the sports betting disruption for a period of time.
Due to the coronavirus spread, all sporting events across the US, as well as many other countries, have been canceled or postponed.
The company also noted that customer spending in its non-betting verticals could be impacted by the prolonged period of economic uncertainty on a global scale.
888 Holdings also said that it has to be more vigilant in its operations and promote a safe online gambling environment during a time when people are leaning more towards online gambling.
Now that major casinos everywhere have shut their doors, gamblers are staying indoors and self-quarantining. Add to this the increased stress and anxiety that the economic uncertainty brings, and the operator have a responsibility to stay vigilant and prevent any gambling-related harm that could occur.
888 Holdings has a pretty impressive balance sheet, boasting of $99.5 million of cash and cash equivalents at the end of 2019. This makes the board confident that the company will be able to face challenges coming its way.
Jane ShawMay 18, 2024Read More
Jane ShawMay 15, 2024Read More
Jane ShawMay 13, 2024Read More
Jane ShawMay 11, 2024Read More