888 share price dips as UK revenue grows but profit declines
The share value of 888 has fallen after its H1 report, which showed group revenue rose 2% year-on-year, to $277.3m, but profit before tax fell 63%, to $22.2m.
The operator’s share price dipped considerably when its financial results were first published, from £1.67 ($2.06) to £1.53, although it later recovered marginally to around £1.57.
Like-for-like revenue was up 7% for 888, with B2C revenue growing 6% to $262.5m and casino revenue up 9% to $175.4m.
Sportsbook revenue also increased 19% to $44.5m, with bingo revenue up 17% but pro forma bingo revenue down 3% at constant currency.
However, poker revenue fell 24% to $23.1m and B2B revenue dropped 44% to $14.8m.
While UK revenue rose 14% to $97.6m, the migration of Cashcade Bingo and the acquisitions of Costa Bingo brands and AAPN impacted 888’s profit; the operator’s acquisition of BetBright for £15m in March equally hit profit levels.
With adjusted EBITDA down 20% to $41.8m, adjusted profit before tax fell 36% to $27.1m, with the aforementioned fall in profit before tax being significantly higher.
CEO Itai Pazner said: "888 has delivered solid performance in the first half of 2019.
"The group’s business in the UK has continued its recovery, which was underpinned by exciting product innovation, as well as 888’s successful casual customer focus, and further expanded across several regulated European markets, including launching its offering in Sweden and Portugal."