A prominent online gaming provider, 888 Holdings, has cemented its dominance in the UK market. This achievement stems largely from the stellar results of its sports wagering and casino divisions, which have propelled the company to a remarkable 82% increase in profits before tax.
This outstanding financial showing has allowed 888 Holdings, home to well-known brands such as 888 Casino, 888 Poker, 888 Sport, and 888 Bingo, to declare a special payout to shareholders for the fifth year running. Investors can anticipate a final dividend of 5.1 pence per share, supplemented by a one-time special dividend of 10.4 pence per share, resulting in a total dividend distribution of 19.4 pence per share.
Market experts at Investec have maintained their “buy” recommendation for the company’s stock, highlighting 888’s impressive reach, advanced technological prowess, and growing sports betting offerings as key drivers. They posit that these strengths position 888 favorably for either industry consolidation or as an appealing acquisition prospect.
Market participants have reacted positively to the company’s robust results, pushing the share price higher by 7.6% in early trading to hit 252 pence. This jump represents an 11-year peak for 888 Holdings on the London Stock Exchange.
A deeper dive into the company’s financial figures reveals that its casino segment saw a healthy 21% rise in revenue, while the sports betting arm experienced an even more impressive 49% surge. These gains contributed to a 13% overall revenue expansion for the group, reaching a noteworthy $520.8 million.
Moreover, 888 Holdings announced a significant rise in pre-tax earnings, which climbed to $59.2 million compared to $32.5 million during the corresponding period last year.
Itai Frieberger, the Chief Executive Officer of 888 Holdings, conveyed his contentment with the company’s performance, remarking, “2016 has been another outstanding year for 888, marked by strong organic revenue and profit expansion. The exceptional progress witnessed across our casino, sports, and regulated market segments is a testament to our strategic course and implementation.”
The 888 conglomerate is making significant strides in the United Kingdom, Spain, and Italy, demonstrating their position as a dominant force within a flourishing sector. Their capacity to not merely endure but flourish in these tightly controlled markets speaks volumes about their adept leadership and well-defined approach. This triumph is evident in their remarkable financial achievements.
From the outset of the current year, their operations have experienced a surge in activity. They have witnessed a substantial increase in daily earnings relative to the previous year, even after factoring in variations in currency exchange rates. The executive team at 888 exudes confidence in the existence of further expansion opportunities, both within their established markets and through ventures into untapped territories. They anticipate an even more prosperous year ahead.
admin