DOM 19 DE NOVEMBRO DE 2017 - 19:18hs.
It has to pay US$10 million

888 slumps following last week’s record UK fine

The online operator experienced a pre-tax loss in the first half of 2017 despite a 9% leap in revenues. 888 fell into the red after being hit for a record US$10 million fine in the UK for failing to protect vulnerable customers and a potential tax bill in Germany.

In a trading update, the company announced a pre-tax loss of US$17.3 million in the six months to June 30, from a pre-tax profit of US$ 27.8m in the same period a year earlier.

 

888 saw a 9% year-on-year increase in revenue at a constant currency to US$ 270m for H1.

 

888 attributed its growth to its core casino vertical, momentum in its 888sport and strong performance in poker. The company’s sport revenue increased by 45% in the first half of 2017.

 

Itai Frieberger, chief executive of 888, said: "While the industry will continue to face regulatory headwinds in the second half of the year, trading in the third quarter has started well and in line with the board’s expectations.

 

"Underpinned by this momentum as well as the proven strengths of the group’s business model the board remains confident that 888 will achieve further progress and deliver its expectations for the full year,” Frieberger added.

888’s revenue from the UK fell to 39% of the total in the first half, from 46% a year ago, after growth in markets such as Spain and Italy. The firm said costs would increase because of increased regulation in the UK.

 

"Further regulation, such as the expansion of gaming duty on casino, poker and bingo free bets in the UK taking effect in the second half of 2017, will increase the cost base for operators in the UK. At the same time, enhanced regulation in the UK around areas such as television advertising and bonuses will impact overall UK market growth,” the company said.

Source:GMB / iGaming Business