888 Holdings Reports Revenue Growth for Sixth Consecutive Quarter

888 Holdings, one of the world’s most popular gaming companies, published its first quarter results and trading update this morning, announcing its sixth consecutive quarter of revenue growth.  Despite an excellent quarter, company shares were off slightly, down 1.6% to 76.75p.

Highlights & Key Performance Indicators

Note: All highlights and KPI are derived directly from the company report.

Group

• Revenue was $94 million, an increase of 25% from the previous year.
• Active customers increased by 87% to 566,000.
• Cash on hand was $72 million

• Revenue was $83 million, an increase of 29% from the same period last year.
• Casino revenue was $42 million, an increase of 26%, with a customer base of 566,000, up 87%
• Poker revenue was $21 million, an increase of 88%, with 405,000 active customers, up 83%
• Bingo revenue was $14 million, a decrease of 5%

B2B

• Revenue was $11 million, an increase of 3% over the same period in the previous year.

Why the Decline in Share Price?

The modest decline has to be seen in perspective with the bigger picture in which 888’s share price has been rising continually since mid-August when it was just under 30.00pps.  According to the International Business Times, the drop today may indicate that some investors are concerned that the company will not be able to re-enter the US market any time soon. The company withdrew from the US after the government passed the Unlawful Internet Gambling Act in 2006, raising all sorts of legal questions for companies accessing the US online market. 888 CEO Brian Mattingly said “I’m very cautious on the US market. It will open. When it will open, nobody is sure. We want to concentrate more on territories where we know they are opening.”

Corporate Comments

CEO Mattingly said, “Our focused strategy has led to another excellent quarter, with ongoing strength in Poker driving March to the highest ever monthly revenues in the history of 888. Poker has continued its robust performance in the early stages of Q2, with our other product areas seeing an expected return to seasonal patterns. As stated at our full year results, there are significant growth opportunities offered by the liberalisation of new markets, which will take investment to realise. We will continue to invest throughout 2012 in order to build market share.”

Company Spotlight

888 Holdings is one of the world’s most popular online gaming companies, offering both consumer gaming experiences and business to business gaming solutions to peer companies. The company’s goal for its customers to provide them with an interactive experience with others online who share common interests. It’s Dragonfish division (www.dragonfishtech.com) offers customisable solutions to other gaming services to enable and enhance their own online presence.

References
↑ Official Company History
↑ Gaming Intelligence
↑ Official Company Trading Update
↑ Gambling Law US
↑ International Business Times
↑ Official Company Information

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