888 Expecting 30% Growth?
Online gaming firm 888 is optimistic of 30 percent revenue growth this year, helped by a better-than-expected start from its new sports betting and bingo sites.
“Current run rate indicates 20 percent (overall revenue growth), and we are bullish on pushing this. Do I think 30 percent is too much? No, I don’t think 30 is too much,” Chief Executive Gigi Levy said in a telephone interview with media sources. Levy added that the firm’s new bingo and sports betting Web sites were seeing strong growth.
“Bingo is doing dramatically above anything we expected. The run rate is currently where we expected to get to by the end of the year, it’s that good.”
“Sports was only launched a few weeks ago, and already last week we had hundreds of new sign-ups every day.”
Online poker and casino firms have been gradually rebuilding their businesses after the U.S. closed off the world’s biggest market in 2006 with a ban on gambling-related banking transactions. The move wiped billions of dollars off the value of online gaming stocks virtually overnight and led to a number of founders and online executives being prosecuted for taking illegal bets. 888 and its rivals PartyGaming and Sportingbet are now locked in talks with U.S. lawmakers.
“I think it’s getting clearer and clearer for everyone that this may take time, but this is heading one way, and that is towards a resolution,” said Levy. 888 and PartyGaming have said they expect a deal, whatever it is, to be reached during the second half of the year.
Analysts expect the firms to be hit with hefty fines but predict a subsequent rush of consolidation as land-based casino operators and bookmakers decide it is finally safe to buy up fast-growing online firms. Levy agreed but said it was unlikely 888 would resurrect previous failed deals with PartyGaming or UK bookmaker Ladbrokes.
In Brief: 888 Holdings Public Limited Company, along with its subsidiaries, is engaged in the provision of online gaming entertainment. The Company operates in two business segments: casino and poker. It operates brands across a range of online gaming Websites, such as 888.com, Casino-on-Net.com, PacificPoker.com and ReefClubCasino.com. The products offered at these Websites include traditional casino table games, such as blackjack, roulette and craps, as well as slot machines, video poker, poker ring games and poker tournaments. The Company’s wholly owned subsidiaries include, among others, Intersafe Global Limited, Cassava Enterprises Limited, Virtual Services Limited and Intersafe Global (Europe) Limited. On December 20, 2005, 888 Holdings Public Limited Company took responsibility for the management of ACTeCASH Limited. The principal activity of ACTeCASH Limited is operating an e-wallet service as a company registered in Gibraltar. The Company is headquartered in Gibraltar.
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