888 Holdings (888) updated the market on a “mixed” trading performance, stating that overall revenue for Q32023 is now expected to be down by around 10 per cent to approximately £400m. Looking ahead, it now expects revenues in Q42023 to be “sequentially higher than Q32023 but lower year over year by a mid-single digit, before returning to growth in 2024”.
Part of the problem through the quarter was simply down to unfavourable betting outcomes, as punters cashed in, boosting win margins across UK and international markets. Industry rival, Entain (ENT), offered the same explanation a week earlier. Additionally, the two gambling groups both pointed to the negative impact of regulatory measures in the UK. There was also a transient effect due to a shift in marketing strategies. Meanwhile, the delivery of key synergies remains on track. MR
UPDATED: Renewi (RWI) has rejected a buyout offer from Australian infrastructure giant Macquarie. Read the story here.
Digital 9's share price collapses
Digital 9 Infrastructure's (DGI9) share price nosedived by more than a quarter in early trading after the internet infrastructure trust said there was "significant doubt" about its future. The company said it may struggle to pay £375mn in debt refinancing due by March 2025.
It said it took on the debt to fund acquisitions but has been stung by higher interest rates. "There exists a material uncertainty which may cast significant doubt over the Company's ability to continue as a going concern," it added. The trust has axed its interim dividend and dividend target for the year. ML
Babcock gets early payment boost
Defence contractor Babcock (BAB) described trading for the first five months of its financial year as “encouraging”, with revenue and cash flow increasing as its operational performance picks up.
Growth in the nuclear infrastructure business and earlier-than-expected fees from a programme to provide the Polish navy with frigates are helping to offset the impact of last year’s business sales, the company said. It left full-year guidance unchanged. The company’s shares rose by 4 per cent. MF
