888 Shares Boosted by Excellent Profits
This week saw shares in 888 Holdings rise more than 6% after the company saw profits rise above forecasts and raised its dividend payout to shareholders. Furthermore, the company is also expanding its sports betting business and at present is the only online gaming company to have operations in New Jersey, Nevada and Delaware.Before interest, tax, depreciation and amortization earnings rose 13% to $76 million last year. The company raised its total dividend payout for 2013 to 14 cents per share, 56% higher than 2012.
In a statement Chief Executive Brian Mattingley said, “We have started 2014 well, with average daily revenue up more than eight percent in the year to date, and look forward to the year ahead with continued confidence.”
However, the new British tax on online gambling which is set to be introduced in December could prove a little difficult for 888 Holdings.
The tax is to close a loophole that had allowed companies to cut their tax bills by basing their operations offshore.
Mattingley didn’t expand on how the new law may affect 888’s results. However, some analysts have predicted that it could cut 888’s earnings by as much as 30%.