888 Holdings strangely reduces its final dividend whilst paying a big special

DividendMax Ltd.

888 Holdings strangely reduces its final dividend whilst paying a big special

888, one of the world's most popular online gaming entertainment and solutions providers, announces its audited annual financial results for the year ended 31 December 2013.

Financial Highlights

Revenue increased 7% to US$401m (2012: US$376m)

B2C Revenue increased 7% to US$352m (2012: US$330m)

Adjusted EBITDAincreased 13% to US$76m (2012: US$67m)

Adjusted EBITDA margin increased to 18.9% (2012: 17.8%)

Profit before tax increased 30% to US$53m (2012: US$41m)

Final dividend at 4.0 cents per ordinary share per policy (2012: 4.5 cents), and due to strong performance the Board is recommending an additional one-off dividend of 7.0 cents per share (2012: 2.0 cents), bringing the total dividend per share for the year to 14.0 cents per share (2012: 9.0 cents)

Adjusted EPS increased 19% to 16.6 cents per share (2012: 13.2 cents)

As at 31 December 2013, 888 had 15.5 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 19% from 31 December 2012

Operational Highlights 

Continued strong performance in core Casino and Poker products

Improved 888Sport offering delivering positive results

Further excellent progress in Spain

Successful launch in regulated US states:

o World Series of Poker (WSOP) brand, powered by 888's gaming platform and technology, launched in Nevada in September 2013

o Launch of iGaming in Delaware in November 2013 with poker, casino table games and casino slots powered by 888

o 888casino and 888poker brands (through AAPN joint venture) launched alongside WSOP brand in New Jersey in November 2013

Recent Developments

In February 2014, the states of Delaware and Nevada signed an interstate compact where-by poker liquidity can be pooled positioning 888 in an excellent position to gain from increased liquidity

Average daily revenue for the year to date up more than 8% against the prior year 

Brian Mattingley, CEO of 888, commented:

"2013 was a very busy but also exceptionally rewarding year for 888. I am delighted to report that we have delivered record-breaking revenue and increased our profitability, driven by our strong brands, exceptional platforms and best-in-class marketing systems.

We delivered excellent progress in our core markets and built on momentum in Spain where we have quickly developed a market-leading position. Casino delivered another strong performance and we made further market share gains in Poker, advancing to number two in the PokerScout global rankings at the year end. We have also significantly strengthened our offering in Sport, which is delivering positive results. All of this was achieved whilst devoting significant energy and resources on preparing 888 for our successful launch in the regulated US market.

I am delighted with 888's achievements in 2013 which were made possible by the amazing hard work, dedication and talent of our team. I would like to take this opportunity to thank each of them for their fantastic efforts during the year.

We have started 2014 well, with average daily revenue up more than 8 per cent in the year to date, and look forward to the year ahead with continued confidence."

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