888 Holdings maintains balance in face of corona virus crisis
888 Holdings, one of the UK’s larges and most prominent online gambling operators, is holding fast in the face of the worldwide corona virus crisis. While the company acknowledges that profits will likely be impacted by the collapse of sports betting markets due to corona virus-related closures, it suggests that other online markets such as poker and casino games which, “might, in part, compensate for the sports betting disruption for a period of time.”
In a “COVID-19 Trading Update” issued earlier this week, 888 Holdings gave shareholders an update as to where the company stands amid a worldwide business collapse. As far as business in general goes, 888 Holdings is holding up pretty well. Company officials do accept the reality of the situation – namely that profits will be down – but aren’t painting a dire picture. According to a report from CalvinAyre.com, the company is seeing, “evidence of increased customer activity,…that might ,in part, compensate for the sports betting disruption for a period of time.”
People who are in lockdown, it turns out, are passing at least some of that time engaging in online gambling. But company officials warn that a prolonged shutdown or global economic downturn could change all that. In a statement reported on by Reuters, 888 Holdings says, “However, in the event of a prolonged period of global macro-economic uncertainty, it is possible that consumer spending across the group’s online gaming product verticals may also become impacted.”
Investors seem to agree with the company’s outlook, at least for the time being. On Tuesday, shares in 888 Holdings jumped by 32 percent. For now, the company seems to be weathering the storm fairly well.