Sharp Drop in First Half Profit for 888 in 20155 years ago
Gaming giant 888 released its results for the first half of the year and the overall conclusion is mixed.
The UK-based company reported total half-yearly revenue of $220 million, which was a two per cent decrease year-on-year. Total profit, on the other hand, was $20 million, which represented a 41 per cent year-on-year decline for the company.
Executives of the company attributed the less than ideal results to payments that have resulted from the UK’s new Point of Consumption tax and the European Union’s Value-added Tax (VAT). According to the company’s half-yearly report, 888 paid $5.1 in VAT and $14.4 million in charges relating to the Point of Consumption Tax.
Revenues for the company’s poker division also fell during the first half of 2015, which came in spite of an increase in player numbers on its online poker networks. $46.2 million in revenue was recorded for 888’s poker operations, a $1.9 million decrease from the first half of 2014.
This could decrease further given the current state of general decline in the online poker market. 888’s player traffic average was hovering a little under the 3000 mark in the first weeks of this year, but this has now fallen to a seven day average of 2100, according to PokerScout.
While that number is still enough to make 888 Poker the second most popular online poker network, the fall will make it difficult to increase revenue, especially as the company was unable to do so after an increase in the player average. The taxes in the UK and the EU may also bite into future revenues for 888’s poker division, something which could lead the company to further boost its presence in areas with lower tax rates and higher growth potential.
Revenues from other areas of 888’s business were mixed in the first half of 2015. The company’s bingo operations posted a six per cent year-on-year decrease in revenue, while its business-to-business (B2B) revenue fell by 10 per cent.
888’s casino operations posted a one per cent increase in half-yearly revenue. However, the jewel in the crown was the company’s emerging offering, which posted $18.5 million in revenue, a whopping 41 per cent year-on-year increase.
Source: Via Casino News Daily
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