As the online gaming group announced its interim results for the first half of 2006, the company\’s Chief Executive took the opportunity to announce that he was stepping down at the end of the year in favour of current COO Gigi Levy.
“I am proud to have led 888, since 2000, through its formative years into the success it is today. Over the past six years, 888 has been a pioneer in the online gaming industry,” said John Anderson.
During the first half of 2006, 888 Holdings reported a 32% increase in net gaming revenue up to $163.5m and a profit before tax of $48.0m, up 88% over the first half 2005, corresponding to a pre-tax margin of 29% (H1 2005: 21%). Cost per acquisition was down to $165 from $200 for the same period in 2005.
Casino net gaming revenue for the half year was up 12% at $89.6m, with a strong increase in the NGR per active player. Poker volumes have also grown impressively with NGR up 68% to $73.9m.
In line with the company\’s strategy of reducing its dependence on income from any one large market, 888 continued its geographical expansion outside the US. Net gaming revenue from non-US territories in H1 2006 was 48% compared to 45% in H1 2005. 67% of new real money sign ups during the period came from non-US territories. The company did particularly good in the UK, where revenues increased by 61%, and Continental Europe, where revenues were up by 16%.
The online casino and poker operator continued the investment in the 888 brand through sports sponsorships, including two new football sponsorships with Sevilla FC and Toulouse FC in addition to the World Snooker Championship and a third year with Middlesbrough FC.
A brand recognition study in the UK revealed that 888 was the third most recognized gaming brand after Ladbrokes and William Hill, making 888 the number one online gaming brand.
Commenting on first half results and future outlook, CEO John Anderson said: “These are excellent results and represent a record performance of profitable growth. We have delivered on all our flotation goals.”
“Trading during the first 10 weeks of Q3 is in line with management expectations and we are on track to achieve a satisfactory outcome for the full year.”
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