888, Running Good As Always Despite 2006 UIGEA
Gigi Levy, chief executive of 888, has praised the company’s foresight after interim results saw pre-tax profits soaring 298% to US$19m (£9m) in the first six months of the year.
Levy said 888 had been steadfast in the wake of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October 2006, as it kept hold of much of its workforce to focus on improving its products and generating revenues to meet forecasts.
Other 888 operational highlights included a white-label agreement with South American-focused online poker company Tower Torneos that will see 888 provide it with the technological platform to offer poker, casino, backgammon and bingo to its customers. Tower Torneos is particularly strong in Brazil. The agreement with Tower Torneos would be one of the key growth drivers for the company in a promising market.
888 will be launching an Italian sports betting products in the next few weeks, however, Levy was keen not to overstate the impact of a sportsbook offering.
Levy added that despite losing the majority of its customers and 55% of revenues after UIGEA, the turnaround that 888 had begun to achieve at the full year (2006) has been successful and the company have maintained their track record of profitability.
With the company active for the past 10 years, Levy said it had based its success on the same strategic principles that had made it successful in the past, “acquiring and retaining customers by delivering a compelling, localised, innovative, unique and entertaining customer experience while being mindful of the complex regulatory environment in which we operate and the necessary social responsibilities that come with our industry”.
Net gaming revenue (NGR) was up 24% to US$97m and pre-tax margin increased to 19%, from 6% in the first half of 2006. Casino NGR grew 22% to US$54m, compared with the same period in 2006, while poker NGR increased 19% to US$41m for the six-month period to the end of June.
