888 Holdings full year profit drops but revenue up

Gaming company 888 Holdings posted a drop in full year profit in part due to the termination of its agreement to buy Bwin.party Digital Entertainment, but revenue grew, as did the number of active customers.

For the year to the end of December, pre-tax profit fell to $32.5m (£23m) from $67.9m in 2014 as the group incurred exceptional legal and professional costs of $17.5m associated with the proposed acquisition of Bwin.

Still, revenue increased to $462.1m from $454.7m as the company saw a 13% rise in active customers in its B2C business. Numis had been expecting revenue of $454m.

The board proposed a final dividend of 4 cents per share and an additional one-off dividend of 8 cents per share, taking the total dividend for the year to 15.5 cents from 15 cents a year ago.

Chairman Brian Mattingley said: “The online gaming market is dynamic and will continue to develop and grow globally. This will be driven primarily by marketing channels, new regulation, and the increasing adoption and sophistication of mobile devices, making our gaming entertainment ever more accessible and enjoyable.

“Trading during the financial year to date has been strong with average daily revenue 20% above the previous year. With strong operational momentum in the business our focus will continue to be on delivering a truly satisfying experience for our customers and delivering strong, sustainable long term earnings growth for our shareholders.”

At 1052 GMT, 888 shares were up 2.5% to 186p.