888 Holdings interim profit drops on taxes but confident over full year
888 Holdings reported a 41% drop in first-half pre-tax profit as the company was hit by new taxes, but said it remains confident of achieving its full-year expectations.
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For the six months ended 30 June, pre-tax profit fell to $20m from $34m in the same period last year while revenue declined 2% to $220m from $225.1m. 888 pointed to the new point of consumption tax in the UK, newly introduced EU VAT charges, which are deducted from revenue generated in certain European markets, and currency headwinds.
In the period, bingo players rose 18%, driven by a strong mobile performance, while casino active players were up 22%.
The company said sport revenue grew 81%, reflecting quality of the improved 888 sport product and increasing brand traction.
Executive chairman Brian Mattingley said: “I am delighted to report that 888 has again delivered a very encouraging performance in the first half of 2015 driven by our quality brands, best-in-class technology and CRM expertise. Operational progress has continued with strong increases in active players and first time depositors despite the external headwinds of a new point of consumption tax in the UK, VAT in certain European markets and adverse currency movements.
“Underpinned by our strong operational momentum as well as 888's core strengths of technology and CRM leadership, the Board remains confident of achieving its full year expectations. We are well positioned to deliver long term sustainable growth and look forward with confidence as we continue to develop the business."
On Thursday, the company said in a statement that it continues to believe the combination of 888 and Bwin.Party Digital Entertainment announced on 17 July would generate significant value for both sets of shareholders.