Disappointing quarter two results for 888 Holdings


Disappointing numbers from a major industry player

Despite signing some impressive deals with major companies like Harrah's, and a stream of contracts from b2b subsidiary Dragonfish, the Gibraltar-based internet gambling group 888 Holdings plc has admitted that its latest Q2 results are "disappointing".

The group saw an 11 percent decline in share price this week - the most in a year of trading on the London exchange - and characterised its second quarter trading as "disappointing in casino, poker and bingo." The shares have fallen 23 percent thus far in 2010, giving the company a market value of GBP 298.3 million ($452.7 million).

Chief executive Gigi Levy outlined in a statement to business news service Bloomberg what measures would be taken to address the performance problem, saying that the company will consider chopping expenses that could include a payroll reduction of 20 percent, and the top ten managers asked to take ten percent pay reductions in the interests of the future of the company.

Industry analysts opined that 888 is feeling the competitive pressure of companies like Party Gaming and Playtech, which they said have been exhibiting stronger online casino revenue growth, indicating that such a weak start to Q2 may suggest that "competitive pressures" are a factor.

However, Levy noted that the typical seasonal slump has been “slightly more” than last year, and postulated that this could be due to weak economies in countries such as Greece and Spain. He revealed that average daily sales were 13 percent below the first quarter 2010 in the first 25 days of the second.

Bloomberg reports that 888’s first-quarter operating income rose 21 percent as it added new casino and poker customers. Operating income rose to $69 million, from $57 million in the year-earlier period.

Levy made the intriguing disclosure that by July this year his company expects to have made two more acquisitions, a consumer gambling company, and a business with both consumers and businesses as customers.

General Gambling News

Login to post a comment:


 
 

Click Here to register a new account

What's going on right now!

3mins ago someone from Bulgaria read Yachting Casino review

Casino Community

Share this page on:
Follow LCB on:
Follow LCB

Casino Of The Month

Casino of the Month

In the last 24h

Totals

  • New Members
    20
  • Members Online
    411
  • Guests
    1,709
Highest Community Rated Online Casinos
Guts Casino
  (245 Ratings)
32 Red Casino
  (456 Ratings)
Club USA Casino
  (343 Ratings)
Mr Green Casino
  (353 Ratings)
Buzzluck Casino
  (221 Ratings)
Lucky Red Casino
  (269 Ratings)
Videoslots.com
  (217 Ratings)
Nexxedge
  (86 Ratings)
Bet365 Games
  (220 Ratings)
Raging Bull
  (138 Ratings)
NextCasino
  (219 Ratings)
CasinoLuck
  (289 Ratings)
Unibet Casino
  (195 Ratings)
Betsson Casino
  (281 Ratings)
SlotsMillion
  (138 Ratings)
Betsafe Casino
  (258 Ratings)
Redbet Casino
  (203 Ratings)
Spin Palace Casino
  (144 Ratings)
Casino Extreme
  (225 Ratings)
ComeOn Casino
  (319 Ratings)
Vera John Casino
  (229 Ratings)
Thrills Casino
  (201 Ratings)
Ladbrokes Casino
  (186 Ratings)
InterCasino
  (174 Ratings)
Slotland
  (393 Ratings)
Bet365 Casino
  (457 Ratings)
Intertops Red Casino
  (158 Ratings)
Win A Day Casino
  (419 Ratings)
Europaplay
  (29 Ratings)
Ruby Fortune Casino
  (163 Ratings)


Follow LCB on Facebook Follow LCB on Twitter Follow LCB on Pinterest Follow LCB on Google plus