888 (888) chief executive Brian Mattingley says he is “delighted with another set of record results” after the group’s mobile business drove a 13 per cent improvement in revenues during the first six months. Headline pre-tax profits dipped 4 per cent due to unfavourable foreign exchange movements, but strip these out and adjusted pre-tax profits rose by a quarter to $36.5m.
The casino business performed best, reporting a 14 per cent improvement in revenue to $108m. But low-growth poker and mature bingo markets didn’t impinge on 888’s progress there either: poker revenues rose 3 per cent, while bingo reported 9 per cent growth. Gamblers are increasingly placing bets on the go: mobile devices accounted for 29 per cent of 888's UK consumer sales in the period -up from 11 per cent in the first half of 2013.
The weak spot was the recently launched US business, which suffered what Mr Mattingley called “teething problems” and possible “over-regulation”. Multiple technical issues, particularly with online payments and concerns over personal privacy, resulted in sluggish trading in New Jersey. The boss insists such problems will be ironed out "over time".
Mr Mattingley announced he will step down as chief executive at the group’s AGM in 2015, and assume the role of executive chairman. Chief operating officer Itai Frieberger is to join the board.
Analysts at Investec expect pre-tax profits of $59.4m for 2014, giving EPS of 15ȼ.
| 888 HOLDINGS (888) | ||||
|---|---|---|---|---|
| ORD PRICE: | 128p | MARKET VALUE: | £454m | |
| TOUCH: | 128-129p | 12-MONTH HIGH: | 171p | LOW: 109p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 48ȼ* | NET CASH: | $119m | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2013 | 200 | 35.5 | 9.2 | 3 |
| 2014 | 225 | 34.0 | 8.6 | 3.5 |
| % change | +13 | -4 | -7 | +17 |
Ex-div: 3 Sep Payment: 1 Oct *Includes intangible assets of $156.9m, or 44ȼ a share £1 = $1.66 | ||||
