Shares down on DJI profit warning
SHARES in DJI Holdings, the Cheshire-based Chinese lottery operator, have fallen 10% after it sounded a profits warning.
The company, which floated on AIM last year, said it expects results for 2014 to be below market expectations due to delays related to the suspension of online lottery sales in China and due to higher-than-anticipated commission payments.
Shares were down 5.7p to 52.3p or 9.8% on the news.
DJI said that although it expects growth in gross sales to be significantly ahead of market expectations, delays to fee and bonus revenue related to work done in 2014, caused by the suspension of online lottery sales in China, and higher-than-expected fees have meant adjusted operating earnings before interest, taxation, depreciation and amortisation in the fourth quarter of 2014 will be “materially lower” than expected.
Chief executive Darren Mercer said despite the setback the company remains confident in the outlook for the 2015 financial year.
He said:”DJI’s long term objective remains to be a leading player in this industry and we believe we are well positioned to succeed through our relationships with substantial trading partners and relevant authorities.
“The company has a strong pipeline of revenue opportunities based on expanding its channels to market and providing new content and we look forward to the remainder of 2015 with confidence.”
