888 Holdings, one of the biggest online gambling groups in the industry, released an impressive profit report for the first half of the year to June. According to the report, the company achieved an astonishing 88 percent increase in profits over the same period last year.
In spite of the sterling financial report, John Anderson, 888’s Chief Executive Officer, has announced his plans to step down at the end of the year. Gigi Levy, the company’s current chief operating officer, will be replacing Anderson.
Excluding share benefit charges, 888’s pretax profit was U.S. $48 million as compared to $25.6 million the previous year. Earnings per share also saw a sharp increase, going up 89 percent to 18.8 cents from 7.3 cents.
Additionally, the company’s pretax profit margin was up from 21 percent to 29 percent and net gaming revenues were up 32 percent to $163.5 million from $123.7 million.
Anderson reported that the first ten weeks of trading of the third quarter were consistent with company expectations and that all financial indicators are pointing to a satisfactory outcome at the end of the year.
On a note of caution, 888 is warning that the Internet Gambling and Prohibition Bill, currently being considered by the U.S. Senate, could have a "material adverse impact on 888's business" if the bill is passed. (52 percent of 888’s net gaming revenue came from U.S. residents in the first six months of the year).
Posted on: September 25, 2006