888: Share price tanks as betting giant struggles to regain market confidence following chief’s exit
The share price for William Hill owner 888 tanked this morning as the group struggles to regain investor confidence following an investigation of its VIP services and exit of its chief executive earlier this year.
It comes despite the betting giant, which also owns gambling brands such as 888 Casino, revealing that it is trading in line with profits expectation ahead of its full year results set to be announced in April.
The group has forecast revenues of £1.85bn and adjusted ebitda of approximately £310m, both on a proforma basis.
Last month, the group’s boss Itai Pazner exited the helm after 20 years following the launch of an investigation regarding suspected money laundering on VIP customer accounts in the Middle East.
Speaking at the time, Lord Mendelsohn, chair of 888, said: “We will be uncompromising in our approach to compliance as we build a strong and sustainable business.”
The gambling firm saw shares drop 3.37 per cent today, taking its fall in share price over the last year to almost 70 per cent.
It joins rival Kindred Group who also saw its value knocked after two of its operators were hit with a £7.1m fine due to regulation failures.
The betting firm was wrapped for failures in its social responsibility duties and anti-money laundering measures, according to the Gambling Commission.
Shares in Kindred Group, which consists of nine brands including Unibet, tumbled after the Gambling Commission found two of its operators to have engaged in behaviour that put punters at risk of “experiencing harms associated with gambling”.