888 rises to top of UK market

Shares in online gambling company 888 are at the top of the UK market this morning after the company posted strong results and hiked its dividend.

The FTSE 250-listed company’s stock hit a record high on Tuesday, rising more than 7 per cent to 252 pence per share after the entertainment group reported higher than expected revenues in 2016 and an 82 per cent jump in pre-tax profits.

Analysts at Canaccord upgraded their forecasts for 888 after the results, commenting:

888 shares are up 32% in the past year, but still look attractive. It offers a 6.7% 2016 yield, boosted by a special dividend – and it has paid special divis in each of the past four years. It is also a strategically attractive business – ownership of technology, industry-leading CRM platform etc – in a consolidating industry, suggesting significant optionality from M&A. It also looks well placed for an eventual opening up of the US market.

The FTSE 250 index was up just 0.1 per cent on Tuesday while the FTSE All Share and the FTSE 100 were flat.