A prominent online gaming solutions and platforms provider, 888 Holdings, has cemented its dominance in the UK market. This achievement is largely credited to the remarkable success of its sports wagering and casino segments, which propelled the company to a substantial 82% rise in pre-tax earnings for the year.
This stellar financial showing has enabled 888 Holdings, the driving force behind 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 payout of 5.1 pence per share, supplemented by a one-time special payout of 10.4 pence per share, totaling an appealing 19.4 pence per share.
Market experts at Investec have reiterated their “buy” recommendation for 888 Holdings, pointing to the company’s impressive reach, advanced technology, and growing sports wagering offerings as primary catalysts. They contend that 888 Holdings is strategically positioned to either solidify its market dominance through strategic purchases or become an appealing acquisition target for a major industry contender.
Market participants have reacted positively to the company’s robust performance, propelling the stock price upward by 7.6% to an unprecedented 252 pence in initial trading on the London Stock Exchange, representing an all-time peak for the company in its nearly 11 years of public trading.
The company’s revenue expansion was driven by a 21% uptick in its casino segment and a notable 49% surge in its sports wagering segment, culminating in a total revenue increase of 13% to reach $520.8 million.
888 Holdings Chief Executive, Itai Frieberger, conveyed his contentment with the company’s exceptional results in 2016, emphasizing the sustained robust organic revenue and profit expansion. He ascribed this accomplishment to the consistently outstanding performance across all business units, particularly in casino, sports wagering, and regulated jurisdictions.
The 888 Group is showcasing its capacity for substantial expansion and solidifying its position as a dominant player within regulated sectors. This is evident in the company’s successful ventures across the UK, Spain, and Italy. These remarkable achievements underscore the inherent potential for organic growth within the company’s operations.
Since the start of the year, trading impetus has remained robust, with average daily income exceeding the previous year’s figures by over 11%, adjusted for currency fluctuations. The Board maintains that 888 possesses considerable avenues for growth in both emerging and established markets, and they anticipate continued exceptional performance in the coming year.
