Betting company 888 Holdings shares surged over 18% as the UK-based bookmaker predicted increased adjusted core profit for 2023 and anticipated a partial recovery of revenues lost due to the suspension of VIP activities in the Middle East.
The Gibraltar-based company is streamlining costs and concentrating on core and growth markets. In a press release, the firm said it has concluded an internal investigation into compliance process failures in the Middle East and implemented robust policies and procedures to reopen accounts and onboard new customers in the region.
888 Holdings expects a revenue impact of £25-30 million ($31.27-37.52 million) from the Middle East suspensions. The company did not provide specific figures for its core profit forecast but reiterated that 2023 revenue would be lower than 2022 by a “low- to mid-single-digit percentage.”
Online player safety measures in the UK and inflationary pressures have also affected the company’s cash generation and profit margins. However, the company’s adjusted core profit for 2022 increased 82% to £217 million, with earnings from its William Hill business offsetting pressures from other areas.
In July, the bookmaker completed its acquisition of betting group William Hill and related companies. William Hill was fined $23.7 million by Britain’s Gambling Commission last month for failing to protect consumers and prevent money laundering. 888 Holdings stated that the issues leading to the fines were related to the period before its ownership.
