888 reinstates dividend as revenues surge

The online gaming firm, 888, has produced record revenues for the first half of the year as customers have flocked to its pixelated poker and casino offerings.

Total revenue between January and June was $186.4m, up 21% on the prior year. Among the business-to-consumer (B2C) units, poker put in the strongest performance, rising 72% to $41.3m. Casino revenues gained 20% and are still comfortably the largest contributor to overall turnover at $83.1m.

Bingo struggled, with revenues falling 2% to $26.9m while the business-to-business (B2B) line, which provides services to other online gaming firms, also dropped, down 1% to $22.2m.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

There's no doubt though that 888 is doing well, as the firm turned around a loss of $15.5m in the first half of last year to post pre-tax profits of $30.3m in 2012.

Things have improved so much the group has decided to restart paying a dividend of 2.5 cents per ordinary share.

The Chief Executive, Brian Mattingly said of the results: "This has been an excellent first half of the year. The tremendous increase in customer numbers caused by the improvements in our product offering has led to these record results, with the highest revenues in the history of 888. On the back of this performance, the Board has decided to reinstate the interim dividend, while we retain the cash necessary to continue growing the company.

"The second half of the year will see increased investment in Spain, where we will attempt to build on our impressive market share, and also in the United States, where we are preparing for regulatory changes. We will also continue to invest in our technological platform, the cornerstone of our offer, and make improvements to our mobile channel."

888 shares were up 2.7% at 9:31. In the last year the value of the stock has nearly tripled.

BS