Regulated markets to impact 888 profits in 2012
Operator's pre-close trading update suggests growth on track since Q3 IMS.
Profit expectations in the new year for 888 are likely to be hit by the company’s entry into newly regulated and regulating markets, the Gibraltar-licensed operator revealed in its pre-close trading update today.
The operator was among the first wave of licensees to be awarded a Danish licence ahead of the country’s egaming market opening on 1 January, and is also among those operators to have applied for a licence in Spain.
Today’s statement saw 888 reveal that: “The Group intends to invest in these markets in order to establish and build market share…[and]…this significant strategic investment, along with the increases in gaming duty, will have an impact on the Group’s profit expectations.”
Results for the year ended 31 December 2012 are still expected to be “[S]lightly ahead of current market expectations,” while trading since the operator’s record third quarter have been described as “very strong, especially in casino and poker.”
The statement carried no mention of the group’s appointment of a new CEO to replace Gigi Levy, although last month saw odds shorten on current deputy chairman Brian Mattingley taking the role on a permanent basis.