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Home » Regular Columns » Three Quick Facts » Three Quick Facts: 888 Holdings, Hotel Chocolat and The Hut Group

Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.

#1. 888 Holdings results in line for year, but Q4 proves challenging

There’s a post-close trading update out from 888 holdings [LON:888] this morning, with the gaming company reporting another record year as a result of growth in regulated markets bolstering revenues by 14% on the year. Data from Q4 was less encouraging as a result of tough comparatives, rising regulatory costs and the withdrawal from the Dutch market, but the 16% drop in revenues for the period was in line with previous expectations. The completion of the William Hill merger, expected in Q2 ’22 holds “transformational” potential and the company is set to report results for the full year in March.

#2. Hotel Chocolat revenues marching higher, still more potential for UK market

Hotel Chocolat [LON:HOTC] has published a trading update for Q2, the 13 week period to December 26th today. Group revenues are up 37% from a year ago and by 63% from pre-pandemic levels, with the company continuing to attract subscription customers. The note highlights how many of these are now being converted from customers who have bought coffee or hot chocolate machines, although arguably growth here is finite. That said the UK market is still seen as having great potential and trading for the FY so far is noted as being slightly ahead of management expectations.

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#3. The Hut Group Revenues up but margins squeezed

THG – more commonly known as The Hut Group [LON:THG] – has published Q4 numbers this morning. Revenues are up 30% on a year ago and 96% on the two year comparative and further upbeat growth is expected here in the year ahead. Perhaps more critically however is the news that EBITDA margins are expected to be in the range of 7.4% to 7.7%, below market expectations of 7.9% and although this is being attributed to a 90bps adverse forex movement, the market may latch onto this, Margin improvement is however expected in the year ahead.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Tony Cross

Tony Cross

Tony Cross is a market commentator with over 15 years of experience, producing compelling, insightful copy for journalists and investors alike. Focusing on macroeconomics, UK blue chip equities and inter market analysis, Cross's commentary is well regarded for its clarity and ability to cut through the waffle. He has been quoted in publications as diverse as The Financial Times, The Times, The Guardian and The Sun. He has also been a regular guest on both Share Radio and TipTV.

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