888 Holdings PLC (LSE:888) tripled profit last year but withheld its final dividend as it homed in on the acquisition of William Hill's non-US business, with regulatory and compliance also creating headwinds to growth so far in the new year.
Average daily revenues throughout January and February were said to have continued to grow compared to the final quarter of 2021, but this represented a double-digit decline relative to the same time a year ago.
Given the above headwinds, the board said this was in line with expectations and the FTSE 250 gambling group says it is planning to launch in several new markets this year, including Ontario in Canada, as well as Colorado and at least three more US states with SI Sportsbook, and possibly relaunching in the Netherlands on a locally regulated basis.
For the past year, profit before tax at the online gambling firm surged to US$81.3mln in the past calendar year from US$26.7mln a year earlier and US$45.3mln two years ago.
Revenue reached US$980.1mln, up from US$849.7mln last time and US$560.3mln in pre-pandemic 2019.The company's consumer-facing arm recorded double-digit growth in most of its core and growth markets, with 'core' markets UK, Italy, Spain up 18%, while 'growth' were 26%, with the firm registering strong growth in Canada, Romania, and Ireland.
With the intended acquisition of William Hill, the company says it expected to scale at a rapid rate, but investors were informed that no dividend will be paid due to the capital requirements of the transaction.
The shares fell 4% to 184.2p by mid-morning on Wednesday.