Should you buy 888 Holdings Plc shares right now?

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Should you buy 888 Holdings Plc shares right now?

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 Should you buy 888 Holdings Plc shares right now?
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Highlights

  • 888 Holdings Plc is facing a lot of regulatory changes in various countries affecting its earnings and share prices.
  • 888 Holdings Plc saw a jump in sale by 14% to £714 million for FY2021, as online casino demand increased during the pandemic.
  • In Q4, the company recorded a decline in sale by 16% to US$214 million as compared to US$255 million in same period in 2020.

The FTSE250-listed online betting and gaming company, 888 Holdings Plc (LON: 888) has been in news, following the jump in its sale by 14% to £714 million for FY2021, despite a slowdown in the fourth quarter. The surge in sales was supported by an increase in demand in the online casino during the pandemic and continued expansion in regulated markets.

FY21 Highlights

The 14% jump in sales was driven by continued success in the company’s product-leadership strategy and strategic expansion in regulated markets. With around three quarters driven by regulated and taxed markets, including Romania, the UK, Italy, and Portugal, which contributed 74% of sales as compared to 73% in 2020.

The sale from business-to-consumer (B2C) increased by 15% to US$934 million, led by 24% jump in sales of casino games and a 4% jump in sports business, reflecting the great impact of regulatory changes in countries.

According to CEO Itai Pazner, the year 2021 was strategically outstanding for the company with the announcement of the acquisition of William Hill International, which is expected to be completed in Q2 2022. Besides, an agreement to sell its B2B and B2C bingo business to Saphalata Holdings Ltd, with a motive to enhance its focus on its B2C segment, and US growth plans and secured sports betting licence from Virginia Lottery, all were in focus.

In Q4, the company registered a decline in sales by 16% to US$214 million as compared to US$255 million in the same period of 2020, largely reflecting its exit from the Netherland market where it failed to gain an online gaming license. In Q3, the company also entered a strategic partnership with magazine Sports Illustrated to launch its first SI Sportsbook in its in-house platform, which has been successfully launched in the US. It also launched its 888sport in-house platform under a local licence in Germany.

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Share price performance

With a market cap of £1,000.49 million, 888 Holding plc’s (LON: 888) shares were trading at GBX 261.60, down by 2.53%, at 12:51 PM on 18 January 2022. The online betting and gaming company has given a negative return of -14.30% to its shareholders in the last one year while its year-to-date returns stood at -13.16% as of 18 January 2022.

888 holding, which is the world’s leading online gambling company, is facing a lot of regulatory changes in various countries affecting its earnings and share prices. However, the share price performance of the company may be supported by continued success in its data driven investments and execution against its product-leadership strategies to deliver quality, usability, and safety in its products.

Eyes on Future

The company aims to develop state-of-the-art technology and products in 2022 that would offer fair, exciting, and safe digital gambling products to players across the world. The company launched “Safer. Better. Together” strategy and commitments in 2020 to promote safer gambling. The business leverages its proprietary technology to offer B2B partners and players a world class and innovative gaming experience.

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