888 to pay special dividend for fifth year on profit surge

Business News

Online gaming entertainment and solutions provider 888’s revenue increased 13% to US$520.8m in the year to the end of December and by 18% on a constant currency basis.

B2C revenue increased 15% to US$460.2m (2015: US$399.4m) – up 20% on a constant currency basis.

Casino revenue rose by 21% to US$279.3m (2015: US$230.6m) – up 26% on a constant currency basis.

Revenue from Sport increased 49% to US$51.9m (2015: US$34.8m) – up 58% at constant currencies.

Adjusted EBITDA rose 12% to US$90.2m (2015: US$80.6m); on a constant currency basis adjusted EBITDA increased 24% to US$100m.

Adjusted EBITDA margin remained stable at 17.3% (2015: 17.4%) or 18.3% at constant currencies.

The board has recommended a final dividend of 5.1c per share (2015: 4.0c per share) due to the strong results and additional one-off 10.5c per share to bring the total for the year to 19.4¢ per share (2015: 15.5c per share).

Chief executive Itai Frieberger said: “2016 was another fantastic year for 888 during which we continued to deliver very strong organic revenue and profit growth.
“This was again underpinned by further outstanding progress in Casino, Sport and across regulated markets.

“888’s further expansion in the UK, Spain and Italy is a strong demonstration of the Group’s ability to drive excellent growth and build leading market positions across regulated markets as the industry continues to head in this direction. “Despite currency headwinds, revenue reached an all-time high of 520.8 million dollars and, at constant currency, increased 18% year on year to US$546.4 million. “At the same time, the Group’s underlying margins remain healthy and profit before tax increased significantly to 59.2 million dollars.

“These strong results demonstrate the truly outstanding underlying momentum in the business. “In addition, the Group’s strong free cash flow and confidence in the outlook has enabled the Board to propose a 25% increase in total dividend for the year. Current trading since the start of the year remains healthy with average daily revenue more than 11% above the previous year at constant currency.”888 is a fast-growing operator with the majority of its revenue now generated from regulated markets.

“The Group is truly diversified with successful operations under 10 licences, four established B2C product verticals and an outstanding B2B offer. “Underpinning 888’s success we have a leading-edge technology platform and an exceptionally skilled team.”The board continues to see a number of significant growth opportunities for 888 both in new and existing markets and we look forward to another exciting year of progress.”