The shares in 888 Holding’s increased with more than six percent today, after 888 announced that they forecast the highest profits ever and at the same time increased the dividends payments for shareholders. Besides poker, 888 offers casino, sports betting and bingo games and they are currently the only online gaming company in the USA that offers games in all three states that have regulated it.
The profits before interests, tax, depreciation and amortisation increased by 13% to $76 million for the year of 2013, which was helped by their Italian and Spanish regulated departments starting to make a profit. Due to this, 888 decided to increase the dividends payout for 2013 to 14% per share, which is an increase of 56% compared to 2012.
“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,” CEO of 888, Brian Mattingley said. At the same time as the announcement was made public, 888’s shares started to trade 6.3% higher, being sold at 143.5 pence which values the company at around £475 million ($785 million).
2014 however may give 888 Holdings and its shareholders smaller profits, as the British government will be introducing a new tax in December, which will close the loophole that gaming companies used by moving their operations to Gibraltar and pay less taxes. It may affect the profits of 888 by up to 30% according to Ivor Jones, Analyst at Numis.