888 Holdings has reported a 52% rise in revenue from 2019 and the director of research at Edison Group, Neil Shah, shares his thoughts.
Shah believes investors will find confidence in 888 Holdings’ fiscal growth, and notes that the momentum of revenue growth and expansion will comfort investors.
Shah said: “Investors will find confidence in the recent global growth of the group, with a climb of 63% in UK revenues supported by a 69% rise in Italy.
"Following the signing of market access agreements in Colorado, Indiana and Iowa in December, the group looks set to continue the expansion of its geographic reach.”
He also pointed out the impact of the Covid-19 pandemic: with less land-based activity and global lockdowns, the customer base sought out online entertainment. Shah said this led to strong growth in B2C revenue.
“Revenue increased by 53% to $814.3m, representing 96% of the group's total revenue, generated in part by the introduction of three new flagship products,” he added.
While an increase in revenue and adjusted EBITDA pleases many, 888 Holdings saw a drop in pre-tax profit. Due to this, the board has recommended a final dividend payment which will total 12 cents per share.
With the 2020 results out of the way, Shah spoke on the company’s current situation, highlighting that its extension with Caesars Interactive Entertainment will continue the company’s growth into 2021.
“Investors will keep a close eye on whether this growth will be maintained following the ease of lockdowns to offset an expected revenue headwind of $70-100m, following annual regulatory changes,” he concluded.