Online gambling operator 888 Holdings has reiterated its commitment to help UK regulatory authorities prevent local residents from being affected by gambling addiction and said this task remains a paramount priority amid the global coronavirus crisis and the massive lockdown that it resulted in.
The Gibraltar-based gambling business acknowledged that the stress and economic uncertainty that was triggered by the Covid-19 pandemic was affecting people. 888 Holdings further explained that it was continuing to communicate with its customers and raise their awareness of why they need to make sure they are in line with safer gambling regulation.
Yesterday, the group unveiled that its yearly profits had been reduced by 50% and it had cut its final dividend by half, with the announcements resulting in a share price decline.
The gambling giant revealed that its pre-tax profit fell from £86.5 million a year before to £36 million last year. Furthermore, 888 Holdings had been forced to pay some extra gaming taxes worth £20.4 million.
Also, in spite of the profit decline that it posted for 2019, the gambling business unveiled an optimistic projection for 2020, explaining that increasing customer interest across the online poker and digital casino vertical that was initially highlighted in March 2020, was still continuing at a stable pace. It also shared it remained confident that it would be able to deliver the preliminary expectations about its performance in the ongoing year regardless of the coronavirus crisis and the massive lockdown associated with it, saying that it has been performing in line with its initial expectations.
Record Number of New Customers Signed Up with the Online Gambling Business in the Last Year
As the Gibraltar-based gambling group revealed, 1 million new customers signed up with it over the last year, and its gambling revenues reached a record high estimated at £445.3 million. In addition, the casino business of the gambling operator experienced a 13% growth over the same period.
Itai Pazner, chief executive officer of the group described 2019 as a year of great strategic progress for the 888 Holdings’ operations. Mr Pazner explained that during the year, a record number of new customers was welcomed by the group.
Furthermore, he reminded that the operator launched its services in several new regulated markets across the world and managed to get very encouraging initial results there, while also finalising the takeover of a high-quality sports betting platform. As far as the current situation with the coronavirus pandemic is concerned, the gambling company’s boss shared that as a business with digital presence only, 888 Holdings should be fully capable for driving safely through the tough times. Mr Pazner, however, confessed that more gambling online could expose players to more risk of getting addicted to online gambling.
As mentioned above, the company decided to cut its final dividend from by half from the one last year. The group’s share price on the London Stock Exchange fell after the announcement.
- Author
Olivia Cole
