888 boss Gigi Levy: bumper dividend 'no connection' with US settlement
888 chief executive Gigi Levy has denied that the announcement of a special dividend payment from the company 'war chest' of cash implies that 888 is not looking to reach a settlement with the US Department of Justice.
888 CHIEF EXECUTIVE Gigi Levy has denied that the announcement of a special dividend payment from the company ‘war chest’ of cash implies that 888 is not looking to reach a settlement with the US Department of Justice.
The company said this morning its first half dividend of 1c would be complemented by an additional special dividend of 2.6c, far above most estimates of 1.75c. The total amount represents a return to shareholders of US$12.4m, or 18% of the US$70m the business has in available funds.
When asked if the firm’s decision to award the special dividend rather than retaining the money as a ‘war chest’ for any potential settlement had been influenced by the lack of progress with the US authorities, Levy (pictured) said: “There is no connection at all. We are being prudent and looking at all legal developments in the US: the Barney Frank and Roberto Menendez bills and state-by-state regulation. “
Levy said that the dividend did not imply 888 would not pursue a settlement with the US authorities, adding that the company wanted to see how things turned out before pursuing the matter further.
Levy continued that there was a “misconception” that the legal uncertainty surrounding the company’s status in the US meant it could not pitch for business there, and that it was already holding talks with potential business-to-business partners in America.
As reported on EGRmagazine.com, the Gibraltar-based operator confirmed 888 half year results showing six month operating income dip 13% to US$118m compared with US$135m in the same period in 2008.