888 halves final dividend during Covid-19 crisis
888 Holdings (DI)
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16:35 18/04/24
888 Holdings halved its final dividend as the online gambling company reported resilient trading so far in the Covid-19 crisis.
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Reporting results for 2019, 888 declared a final dividend of 3 cents a share, down from 6 cents a year earlier. Total dividends for the year were 6 cents a share, less than half the 12.2 cents paid out in 2018.
Adjusted pretax profit for the year to the end of December fell to $53.2m (£42.5m) from $86.7m a year earlier as revenue rose 6% to a record $560.3m. Reported pretax profit more than halved to $45.3m from $108.7m as gaming duties increased by almost $26m and the group incurred $2.3m of exceptional costs without a repeat of $11.1m one-off income in 2018..
888 said business was in line with its board's expectations so far in 2020 with no change to trends reported in a Covid-19 update in March. The company said the cancellation of sporting events would hit its sports betting business but that increased use of casino and poker products could partly offset that impact. But in an extended period of economic turmoil consumer spending across its business may be affected, it added.
Unlike many other companies 888 has not scrapped its final dividend to hold on to cash during the coronavirus crisis.
888 said the halving of the final payout "reflects the performance of the group, regulatory developments and the importance of retaining adequate cash to fund potential investment activities and as a prudent measure given the unprecedented uncertainty caused by Covid-19."
The company added: "While it is unclear how this fast-moving situation will evolve over the coming weeks and months and it is incredibly difficult to predict how consumers will react throughout this period of unprecedented uncertainty, as a purely online operator with diversified brands across product verticals and a strong balance sheet, the board is confident in 888's ability to manage these challenges."