27th Sep 2018 09:30
LONDON (Alliance News) - 888 Holdings PLC on Thursday swung to a profit in the first half of 2018 on the back of the release of tax provisions, prompting a raised dividend.
The gambling websites operator and platform provider said it remains well positioned for future growth, underpinned by diversification across products and markets.
"We have maintained strong momentum in Casino and Sport particularly in continental European markets. In the UK, we are pleased to report that since the period end we have started to see positive trends in revenue," said Chief Executive Itai Frieberger.
"Trading during the second half of the financial year to date has been in line with the board's expectations with average daily revenue excluding the UK 6% higher year on year, 4% lower overall and an encouraging 9% increase in group new customers acquisition. We have several exciting growth opportunities ahead, and the board remains confident that the profit outlook for the full year will be in line with market expectations," Frieberger added.
888 recorded pretax profit of GBP60 million for the six months to the end of June, compared with a loss of GBP17.3 million in the year ago period, on a revenue GBP283.9 million and GBP270.1 million, respectively.
The company recorded exceptional gain of USD12 million in the first half. This followed the release of provisions after assessments in respect of a legacy tax issue in Germany. In the first half of 2017, the company had taken an exceptional charge of GBP50.8 million for the same German tax issue.
Adjusted earnings before interest, taxes, depreciation and amortisation increased by 10% to USD52.4 million in the recent half from USD47.6 million a year before.
888 declared an interim dividend of 4.2 cents per share, up 5.0% from 4.0 cents paid a year ago. Shares in 888 were trading 8.1% lower at 206.60 pence each.
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888.L