Will Brexit Impact 888 Holdings?

In recent news, we’ve learned that 888 isn’t that optimistic about Brexit. In fact, 888 Holdings has cut its interim payout and warned its shareholders that Brexit may impact their business negatively. And yet that’s even if the company has recorded a decent first half for this year.

The truth is, in the six months that led up to June 30. The company saw its overall revenue drop by 2.3%. And so the 2.3% drop translated into a revenue fall from £227.35 million to £222.1 million. But 888 also attributed this revenue lost to a German tax relief (worth £8.6 million) they didn’t get as they previously did. The company also highlighted that if last year’s tax relief was added to today’s figure. 888’s revenue would, show a growth of 1.5%.

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A Drop in Pre-tax Profit

All and all, despite what seems to be promising figures, 888 also announced that their pre-tax profits fell a staggering 63%. It dropped from £48.1 million down to £17.8 million. But, the company did note that depreciation and amortisation costs rose significantly as well.

In fact, they went from £8.1 million to £12.3. Plus, the exceptional costs grew to £1.3 million, from £9.6 million last year. And, let’s not forget to mention that 888 Holdings lowered its interim dividend by 29% too. Consequently, the company’s shares took a hit as well.

Looking west for profits and opportunities

All and all, it seems that Brexit is heavy on their minds. The company who’s registered Will Brexit Impact 888 Holdings?inGibraltar was relatively negative about the possible outcome of the coming out. Brexit may mean that it “may become ineligible to continue to hold regulatory licenses in certain European jurisdictions”.

And yet the company remain optimistic. Indeed, during this time, they’re attacking new markets such as Sweden and Portugal. So, while the UK may have a few question mark for the brand who once thrived there, it seems they’ve have their eyes open to new opportunities. And more specifically in America, where the company is quite successful with its sportsbook, poker and casino product.