Tuesday 10 September 2019 8:42 am

Shares in gambling firm 888 Holdings slide on first-half profit dip

Shares in gambling company 888 Holdings fell nearly nine per cent this morning after profit fell by nearly two thirds in the first half of the year. 

The company said profit before tax for the six months to 30 June was $22.2m (£18m), down from $60.1m in the first half last year.

Read more: Online gambling firm 888 grows profits after year of strong expansion

Adjusted earnings were $41.8m, down from $52.4m in the first half and its adjusted earnings margin fell to 15.1 per cent from 19.2 per cent. 

Revenue increased two per cent to $277.3m from $273.2m in the first half of 2018.

The gambling firm said trading in the second half of the financial year to date had been in line with expectations, with average daily revenue six per cent higher than in the third quarter of 2018.

Read more: How marketing messages have had to change for gambling companies

Chief executive Itai Pazner said: “The board continues to believe that 888 is very well positioned for the future as a result of the group’s diversification across products and markets, product leadership, and first-class team.”

And added: “888 has a number of exciting growth opportunities ahead which will leverage the group’s new product developments and marketing innovation. As a result, the board remains confident that the outcome for the full year will be in line with its expectations.”

The company’s share price fell nearly nine per cent to 153p this morning.