888 May Exit German Market
High taxes in Germany are being blamed for a sharp fall in profits for 888 Holdings and the company said it is considering leaving the market.
The company reported its pretax profit fell 68 percent to $18.8 million. The company said paid a total of $50.8 million in exceptional charges for the period. Those charges included a $45.3 million payment of potential value-added tax relating to the provision of gaming services in Germany prior to 2015.
888 also pointed to one of its subsidiaries that has been the subject of a German court ruling, which includes general findings upholding the prohibition on offering online gaming, causing it to assess “the status and breadth” of its offerings in the country, according to a report in the UK Financial Times.
888 said its revenue increased 4 percent to $541.8 million, while EBITDA grew 12 percent $100.7 million, up 19 percent on a constant-currency basis.
“The group’s growth was driven by further expansion in casino, sport and across regulated markets. This very robust outcome was achieved despite the group’s withdrawal from certain markets during the year and demonstrates 888’s resilience and Agility,” said Chief Executive, Itai Frieberger in a press release.