(Reuters) -888 Holdings on Wednesday forecast annual adjusted core profit to be slightly higher than last year, as the return of sporting events and easing of restrictions in public spaces offset higher costs at the British gambling group.
The company, which last month partnered with Sports Illustrated to expand in the United States, said the second quarter was slightly ahead of the board’s expectations after total revenue jumped 10% to $257 million at constant currency rates.
The pandemic spurred a surge in online betting during the lockdowns. That strong demand, however, is expected to level as pandemic-related restrictions ease.
888 said it was investing in its platforms and marketing to attract customers.
“The strong momentum from the first quarter of 2021 continued into the second quarter, albeit with the year-on-year growth rate moderating in light of stronger comparables from the prior year,” Chief Executive Officer Itai Pazner said.
The company had performed well in a “potentially tricky” second quarter, Peel Hunt analysts said, adding that they were confident of an upside from 888’s geographic diversification.
The company’s regulated and taxed markets, including Europe, saw robust growth and accounted for 74% of total sales in the second quarter.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Shailesh Kuber and Shounak Dasgupta)
