Betting firm 888 shares slide 15% as profits expectations fall

The company, which operates 888casino, 888poker, and 888sport among other brands, said it now expected an adjusted core profit margin of about 18% to 19%, down from 20% projected previously. Picture: iStock

Betting firm 888 Holdings has lowered its annual core profit expectations after a 10% decline in third-quarter revenue, partly due to tighter regulations in Britain.

The company’s shares ended 15% lower to a more than two-month low in London trade. Britain recently laid out plans to crack down on problem gambling with proposals that would see new limits on online stakes, increased affordability checks on customers and a new levy on betting firms.

Executive chair Jon Mendelsohn said performance in the quarter had been below expectations, and earnings would be below expectations.

888 said third-quarter revenue was also weighed down by customer friendly sports results affecting win margins across its markets in September, as well as the impact of compliance changes in its online markets.

The company, which operates 888casino, 888poker, and 888sport among other brands, said it now expected an adjusted core profit margin of about 18% to 19%, down from 20% projected previously.

The warning comes as the company regroups under new leadership after bringing in Per Widerström as chief executive in July and Sean Wilkins as finance chief this month. Earlier this week, Ladbrokes owner Entain warned on its annual and third-quarter online net gaming revenues.

• Reuters