Gaming Company 20 Percent Growth Forecast in Industry, as Shares Shoot Up 3.4 Percent
888 Holdings Plc, which is the second largest Internet gambling company within the United Kingdom, has a bright future. The company saw its stock price jump up to about 3.4% and issued a report detailing a future filled with utmost confidence, as it predicted growth of more than 20% in the online gaming industry by the end of next year.
Strategic Financial Prediction
The prediction is perhaps meant to distract 888 Holdings second-quarter performance that saw its operational income fall to about 12% to 61million dollars from the previous year. The percentage was still a 7% improvement in performance in this year first quarter. At any rate, the prediction worked. The strong prediction as well as an announcement that 888 was closer to making a significant acquisition made the company’s shares to dramatically rise by 3.4%.
888’s Chief Executive said that, one of the acquisitions was about to be closed, terming it as a bolt-on, which would aid their daily business strategy. He also said that a couple of others were at an earlier stage.
The Chief Executive continued that the confidence was very high, and 888 would raise one times EBITDA at least, to fund the acquisitions. Currently, the forecast consensus for a full-year EBITDA stands AT 52.5 million dollars. 888 Holdings Plc cash is valued at around 110 million dollars and no debt.
Just like other online gaming companies, 888 is targeting the everyday business segment to raise its growth as the tough economic hardships continue to add more pressure upon its consumer business.
The company is in search of European companies for acquisition, and has an option to develop the online games to target the strategic female customers. Internet bingo has made the number of females online gambling in Britain to rise, as much as the online gambling has an 85% male customer base.