LONDON (Alliance News) - 888 Holdings PLC Friday reported a drop in profit in the first half of 2015 as it was hit by tax and VAT charges and movements in foreign exchange rates, as it continues its pursuit of a potential takeover of Bwin.Party Digital Entertainment PLC.
The online gaming company reported a 41% drop in pretax profit in the year ended June 30 to USD20.0 million from USD34.0 million in the first half of 2014, as revenue fell 2% to USD220.0 million from USD225.1 million. 888 said that its results were hit by the new UK point of consumption tax, the newly introduced EU VAT charges, and headwinds from movements in foreign exchange rates.
Like-for-like revenue, however, increased 9% to USD244.9 million, which it said was driven by "sustained strong growth in Casino and exceptional momentum in Sport".
888 is currently in talks with Bwin.Party over a potential reverse takeover of Bwin.Party by 888. Bwin.Party agreed an offer from 888 back in July, but is now considering proposals from rival GVC Holdings PLC. In a statement released on Thursday, Bwin.Party asked GVC to clarify the best terms on which it is prepared to make an offer for the company, but said that its agreement with 888 remains unaffected by the talks with GVC.
On Friday, 888 said that further details of the offer are expected to be published in a circular and prospectus on Friday.
Bwin.Party and GVC also reported half-year results Friday. In its statement, Bwin.Party said: "Whilst discussions with GVC are continuing, there has been no change to the board's recommendation for 888's offer."
888 will pay an interim dividend of 3.5 cents, flat year-on-year.
"Underpinned by our strong operational momentum as well as 888's core strengths of technology and CRM leadership, the board remains confident of achieving its full-year expectations. We are well positioned to deliver long-term sustainable growth and look forward with confidence as we continue to develop the business," Chairman Brian Mattingley said in a statement.
Shares in 888 were trading up 0.4% at 162.18 pence Friday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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