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In decline for some time now, 888 Holdings is scrapping dividend payments over uncertainty about future regulation in its key European markets, according to the Independent.
Pre-tax profit fell by 56 per cent to $4.3m (£2.8m) during the first half of this year. The company blamed the slump on a downturn in the online poker market. Still, the sector overall has seen modest gains on a weekly basis.
888 Holdings announced cost-cutting measures this week that would total some $6 million.
888 Holdings says it is working hard to address the general decline, upgrading its software and launching new marketing schemes. The company continues to engage in the same wasteful “spam” marketing efforts that seemingly have not helped its position however.
"Our business experienced a difficult first half against the backdrop of a challenging economic environment," said Gigi Levy, the chief executive of 888 Holdings.
He added: "In order to continue investing for future growth and to support potential acquisitions, the board has decided not to declare an interim dividend at this time and finalise the full-year dividend when the full-year results are available.
"We remain confident in the underlying fundamentals of the business and believe the move of 888, and the industry, to become a locally regulated gaming-entertainment operator, presents significant opportunities for growth and merger and acquisition activity."
Aaron Goldstein, Gambling911.com
