The recent lockdown has brought in mixed results for the gaming industry. But for one of the leading online gaming companies, 888 Holdings, the situation has resulted in an upward surge in its financial situation.
Last Friday, 26 June 2020, booking and gaming giant 888 holdings announced far better financial results compared to what they’ve initially forecasted. This growth was because of the rise of people playing online amidst the lockdown and due to the recent lockdown easing, the return of big sporting events.
Financially, the company has topped the midcap leader board as stocks jumped 15.6%. The company has also reported that their average daily revenue year to date has seen a 34% increase compared to their previous operating year, and this was primarily attributed to their structural shift towards online services.
888 Holdings’, chief executive officer, Itai Panzer commented that the company’s year to date performance has pleased its shareholders and they are anticipating that its adjusted EBITDA for 2020 will be significantly ahead of its prior expectations. He also said that the performance was built upon the company’s customer acquisition campaigns last year and their focus on entertaining greater customer numbers in recent years.
The gaming industry, particularly casinos and many in-land gambling houses have seen varying financial results brought about by the Coronavirus outbreak and the subsequent lockdown that followed, of which shut down competitive sports globally. As a result, many people have taken to playing online poker and other online gaming services to pass the time.
Analysts from Peel Hunt, a leading investment and research company, said that the lockdown has brought about negative earnings for the gaming industry overall, however, it has noticeably hastened the shift towards online services. Due to this, they’ve placed 888 Holdings in a good spot compared to the competition because of its recent push towards online services. Because of this, they recommend 888 Holdings to focus on its marketing efforts in order to take lead.
Also, bookmakers such as 888 Holdings and William Hill have seen positive revenue inflow and increased customer interaction due to the reopening of horseracing, the Premier League and Germany’s Bundesliga. Pazner said that the return of certain sports events in recent weeks has led to better than expected customer reaction and because of this, the company’s current sports revenue run-rate is ahead compared to the numbers they’ve seen the same month last year (June 2019).
Despite the current difficulties with the pandemic, Pazner has said that the company is in a good position to benefit from a potential long-term shift towards online services, as seen in several consumer industries. He also stressed that they must remain vigilant about their responsibility to protect customers and prevent gambling-related harm and in order to do so, they will continue to take proactive measures, communicate about safe gambling and invest in their products and technology to ensure that they will always deliver a fun and safe experience.