27th Aug 2014 07:56
LONDON (Alliance News) - 888 Holdings PLC announced a number of changes to its management team Wednesday, while reporting a solid set of first-half results and declaring a 17% increase in its interim dividend.
The online gaming company said strong revenue growth during the period was driven by an enhanced mobile offering, although it said profit was hurt by sterling strength.
888 said Non-Executive Chairman Richard Kilsby will retire at the company's 2014 annual general meeting, at which time Chief Executive Officer Brian Mattingley move over to become executive chairman.
888 said day-to-day operations will continue to be guided by Chief Operating Officer Itai Frieberger, who will step up to become a director of the company on January 1, 2015, together with Chief Financial Officer Aviad Kobrine.
The online gaming company also reported its half-year results Wednesday, posting a 15% increase in revenue to USD225.1 million for the six months to June 30, up from USD200.1 million a year earlier, driven by strong growth across its business-to-consumer and business-to-business operations, especially from its casino products and mobile offering. Sport revenue on the other hand was given a boost by the recent FIFA World Cup.
888 reported a pretax profit of USD34.0 million for the first half, down 4.2% on the USD35.5 million recorded in the first half of 2013, hit by higher foreign exchange losses and launch costs for All American Poker Network in the regulated US market.
Pretax profit net of finance costs was up 25% to USD36.5 million, from USD29.2 million the prior year.
"Casino was the standout performer delivering another period of double-digit growth. We are delighted by the turnaround of our improved Bingo business and 888sport has delivered an outstanding performance by more than doubling revenue year-on-year reflecting the strength of our re-launched offer," said Mattingley in a statement.
The company declared a 17% increase in its interim dividend to 3.5 cents per share, and gave a confident outlook for the remainder of the year.
"Whilst the outcome for the full year will be dependent on trading in the second half we continue to look forward with confidence as we further develop the business," Mattingley said.
888 said that whilst it expects that the first half will contribute more significantly to its full year performance than in prior years, trading remains robust in the second half, with average daily revenue so far in the third quarter 15% higher than 2013.
"Today?s release highlights the robustness of growth in the company with strong performances from all core parts of the business," said Investec analyst Andrew Fitchie in a research note. "The considerable US opportunity continues to provide exciting upside in the medium term... Meanwhile, the strength of the group?s existing offering underpins our confidence in the company going forward".
888 shares were 1.6% at 128.48 pence in early trading Wednesday, reversing gains made at the open.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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