Online gaming group 888 Holdings has said that it now expects full-year earnings to be ahead of expectations.
Following a strong third quarter, which saw revenue jump 42% year-on-year, the firm said that trading has remained very strong, particularly in casino and poker.
"888 therefore expects clean EBIDTA [earnings before interest, tax, depreciation and amortisation] for the year ending 31st December 2011 to be significantly ahead of market expectations," the statement said.
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Shares rose 5% to 36.75p in morning trade on Monday, helped by 888's bullish outlook for 2012 - "2012 is set to be a year of major opportunity for 888, with the opening of several newly-regulated markets across Europe. The Group intends to invest in these markets in order to establish and build market share."
However, the group warned that this investment, along with gaming duty increases, will have an impact on profit expectations. Nevertheless, 2012 results should still be "slightly ahead" of current forecasts, it said.
Evolution Securities analyst James Hollins said this morning: "The expected decline in FY12E YoY earnings will cause concern for some investors, but the group is making sensible investments in much called-for regulating territories, driving high quality longer-term earnings."
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