888 Holdings Dish Out Special Dividend After Excellent Results
888 Holdings have announced a 33 percent rise in 2014 earnings and will be handing out a 7 cents dividend, Chief Executive Brian Mattingley announced the good news on Tuesday and said that they are “constantly appraising opportunities” as they look for acquisitions to bolster their growth Last month we reported on the talks with William Hill which would have seen a giant takeover. These failed at the last moment as there was disagreement of a major stakeholder over the price.
888 Holdings like other UK bookmakers have been hit hard by the PoC tax that came into effect in December. Here bookmakers are now been taxed on any bets taken from British based gamblers irrespective of where they are located.
In the past may UK bookmakers operated from tax havens like Gibraltar which enabled them to pay a much lower tax rate. Other factors set to cut into UK bookmakers profits are tax changes across Europe. These will affect the smaller gaming operators more as the bigger players will look to expand and grow in order to soften the financial impact of the new tax systems.
Mattingley said,” We are constantly appraising opportunities. Infill acquisitions are something that, if you are a company of our size in the industry, you need to get critical mass, and to buy back some of the core earnings lost to UK Point of Consumption (PoC) Tax.”
The share price of 888 Holdings was up 2.5 percent to 156.5 pence as core casino business contributed to the 14 percent rise in revenues. 888 were in generous mood and said they would recommend a once off 7 cents per share dividend as well as a final dividend of 4.5 cents per share.