888 Holdings PLC is not for sale according to company CEO Brian Mattingley.
“888 has never been up for sale, but won’t reject looking at strategic and tactical deals,” Mattingley told Dow Jones Newswires.
A new UK point of consumption tax levies a 15 percent tax on profit made by companies on bets by UK consumers, which has made it more transparent for investors to predict the income of online gaming firms and led to many firms thinking about consolidation in the industry.
Mattingley said the tax will likely marginalize smaller operators but presents opportunities for firms like 888.
“We are constantly appraising opportunities,” Mattingley further told Reuters after announcing a 33 percent rise in 2014 earnings and a special dividend of 7 U.S. cents. “Infill acquisitions are something that, if you are a company of our size in the industry, you need to get critical mass, and to buy back some of the core earnings lost to UK Point of Consumption Tax.”
His comments come after reports that that 888 and William Hill were in talks about a possible 720 million pound takeover of 888 by the British bookmaker. Those talks, however, have ended.
Bwin.Party Digital Entertainment PLC also continues to be in discussions with several parties regarding potential business combinations, while GVC Holdings PLC on Monday said it was also interested in possible acquisitions.
Mattingley said he expects the point of consumption tax to impact 2015 earnings. 888’s pretax profit rose to $67.9 million in 2014 from $53.2 million a year earlier. Revenue rose 14 percent at $454.7 million.
