Online gambling firm 888 Holdings is eyeing an upbeat full-year forecast as sporting activity returns. It noted that the adjusted core earnings will be much higher than expected because more players were onboarded.

Shares jump on the news

The FTSE-250 company’s shares jumped on the announced. By 0837 GMT, its share price had risen to 174.4 pence with a 15.6% jump. It topped the midcap sector for the day. Gambling companies have experienced a mixed response from the coronavirus pandemic. One of their biggest money-making systems- live sports- was missing from action. As a result of this, more people went to online casinos to play bingo and poker as they remained isolated in their homes.

The company also noted that its average daily revenue this year was 34% higher compared to the previous year. It said that making a structural shift towards online services helped it a lot. Analysts at Peel Hunt noted, “Lockdown has been negative for gambling revenue overall, but it has clearly accelerated the lane change to online. 888, in the race-tuned online casino, has been well-placed to push down on the marketing accelerator and take the lead.”

The sporting action will bring in better results

William Hill and 888 are amongst the handful of British bookmakers that would benefit immensely when sporting action returns. The Premier League in the UK will be returning to action alongside horseracing events. The German Bundesliga will also be providing a refreshed set of opportunities to users. 888 Holdings CEO Itai Pazner said that the customer reaction to the slow return of sporting events has been better-than-expected in the month of June. The chief executive also highlighted that the sports revenue run-rate has also been higher in June 2020 than June 2019.

In May, the company had also highlighted the risks of gambling-related harm as more people in Europe were isolated at homes due to government orders of shutdowns.