888 "confident" of hitting 2014 revenue targets
Operator set for 25% EBITDA increase to $95m but analyst warns of "significant headwinds" going into 2015
888 said this morning it was “confident” it would meet management expectations for its full year 2014 financial results, and analysts said EBITDA remains on track to increase 25% year-on-year.
In a short pre-close trading update issued to the market, 888 said that since announcing its Q3 2014 results last month business had “continued to perform in line with management’s expectations”.
In the third quarter the operator saw a 22% increase in group revenues to a record US$114m, with B2B revenues up 23% and B2B up 41% due to the expansion of its US business.
Off the back of 888’s strong Q3 performance Numis Securities analyst Ivor Jones forecast a 25% year-on-year increase in EBITDA to US$95m, with earnings per share up 19% to 19.4c.
But Jones said 888 also faced “significant headwinds” going into 2015 and his projected decline in EBITDA to $86m next year was “unchanged”.
“The proposed introduction of the point of consumption duty by the UK government will lead to intensified competition in 888’s core market with an unpredictable impact on its fortunes,” Jones said.
“However, we believe it is well placed to confront these challenges. The fact that 888’s financial position continues to meet expectations, demonstrates the benefits of its operational excellence,” he added.
888’s share price was up 1.25% to 138.00p at the time of writing.