888 Holdings Shares Fall As Revenue Declines 13% In Q2 So Far

Gambling websites operator 888 Holdings plc has released its 2010 first quarter results, which shows total operating income at $69 million, up 21% from a year earlier.
Income from Dragonfish, 888’s business to business operation, was down 13% compared to Q1 2009 at $10 million. Conversely, business to consumer operating income was up by 30% to $59 million, mostly due to good casino results and 888’s emerging offerings.
Total operating income from the company’s casino operation had risen 23% compared to last year to $33 million, while its emerging offerings had reached $14 million, representing a massive 203% increase.
888 Holdings plc is also in the enviable position of being debt free with cash and cash equivalents of around $93 million with $36 million of that figure representing liabilities to customers
Despite the reasonable Q1 results, the second quarter hasn’t started nearly as well for the Pacific Poker operators, and the daily average revenue for the first 25 days of the new quarter is already 13% lower than the first-quarter average.
Commenting on the mixed results, Gigi Levy, the Chief Executive Officer of the 888 said:
“While Q1 saw improvement on a year-on-year basis, B2C trading remains challenging across our product range, partly influenced by the seasonal pattern. Emerging Offering continues to out-perform the core products, and Dragonfish continues to win new deals, notably those in the newly regulated Italian market with bwin Italia and Gioco Digitale. However, revenue from new deals is yet to gain significant volume.”
“We believe that the right steps are being taken to counter the current challenges we face, and the board remains confident in 888’s strategy.”
Following the results being released, shares in 888 Holdings Public Limited Company continued to fall and dropped a further 2.13% to 91.80 pence on the LSE, having dropped 4.82% in yesterday’s trading.