888.COM NGR UP 23 PERCENT

21 November 2008

Q3 results show generally good performance, although poker stagnates

 

Gibraltar-based online gambling group 888 Holdings plc has turned in another positive third quarter result, presenting a rise in net gaming revenue of 23 percent to $66 million despite the worsening economic conditions. Online poker revenues remained stuck at last year's Q3 figure of $19 million, but casino NGR reached $34 million, up 18 percent. while NGR from emerging offerings such as bingo rose 121 percent to $12 million.

Operating income for the quarter was up 24 percent at $68 million.

Operational highlights included the launch of the Littlewoods online offering under a strategic partnership with Sportech (see previous InfoPowa reports). Pacific Poker was also augmented by the introduction of four new languages, while 888 also ran a successful UK bingo TV campaign, and launched 888sport in Germany and France. The period saw a number of new games integrated onto the 888 platform.

888’s Q3 performance boosted cumulative NGR for the nine months to 30 September by 31 percent to US$197million, with total operating income YTD up 33 percent to $203 million.

The company said that trading during the traditionally weaker summer months of July and August was solid with total operating income in August growing above July's level. In September, however, global economic conditions and sharp exchange rate movements resulted in lower turnover than August. However, the company said that trading during the first nine days of November had been better than October, driven by casino and bingo, “...with an increase of approximately 8 percent above October”.

Gigi Levy, CEO of the group said: “Our underlying business remains as solid as ever, as demonstrated by the constant deposit size by local currency. Despite external adverse economic conditions we are confident in our business model and strategy. Our firm foundation of B2C earnings will be complemented by our growing B2B line of business which will be an increasingly large contributor over the medium term. We look forward to delivering growth this year and beyond."