888 Revenue Up 26% To $331m For 2011

UK online gaming group 888 Holdings has just released its fourth quarter results which showed a 28% rise in revenue year-on-year to $91 million.
Overall, the group’s revenue for the whole of 2011 was up 26% to $331 million compared to $262 million in 2010, representing the highest ever recorded. Commenting on the impressive figures, deputy chairman Brian Mattingley said:
“We are delighted with 888’s strong performance over the last year and in particular Q4. Q4 revenue is the highest on record and represents five consecutive quarters of revenue growth.”
888 Holdings strong performance was led by its B2C casino and poker offerings, which generated $61 million in revenue for 2011, up 58% compared to $38 million in 2010.
The fourth quarter of 2011 alone saw the company’s B2C poker revenue rise by 76% to $19 million, compared to $11 million in Q4 2010. 888’s active poker customers were also up a huge 58% in Q4 to 318,000, with Brian Mattingley explaining:
“Strong trading was led by an excellent performance in our B2C Casino & Poker, and is the successful result of an increased strategic focus on our core competencies and the stand out success of Poker 6.”
The groups interim management statement has also indicated that 888 has taken its momentum forward and is currently experiencing record trading levels for 2012 so far, with January’s average daily revenue already 25% ahead of those recorded for the same period in 2011.
Consequently, Nick Batram from Peel Hunt has recommended the company’s shares with a target price from 46p to 63p, commenting:
“We believe the fourth quarter figures show that the improvement at 888 is sustainable. Our confidence comes from a view that the technology has clearly proven itself, there is much greater management focus and these factors should also enhance the group’s strategic position in a rapidly evolving market.”
Following the financial results, 888’s share price is currently trading at 56.75p, which is near its 52 week high of 65.25p and way ahead of its 52 week low of 28.25p recorded on 22 August 2011.