Disappointing 2nd quarter results for 888

One of the largest companies in the gaming industry, 888, have announced that revenues in the 2nd quarter have been disappointing. 888 operate 888 Ladies and Wink Bingo, and also provide the software to a large number of bingo sites, including Think Bingo, Foxy Bingo and Cheeky Bingo. As soon as the results were announced shares fell from 98p to 80p, and Playtech’s shares fell in sympathy. 888 is now capitalised at £280 million.

Some of the fall was expected, following usual seasonal trends, but as the fall was greater than expected analysts believe that poor operating performance was also a factor. A stock exchange announcement said that “Q2 Trading to date has been disappointing in casino, poker and bingo…during the first 25 days of the quarter daily average revenue was approximately 13 per cent below the Q1 average.”

Chief Executive Gigi Levy 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.”

888 has been battling against increased competition, both in its business to business sector, with Playtech and Party Gaming emerging as strong competitors, and its consumer facing brands, where casino and poker are important factors.

888’s Dragonfish revenues are dominated by the Cashcade sites, so it is good news that 888 have recently signed an extension to their software providing deal with Cashcade for another 2 years.

Related bingo news:

1. Party Gaming increase revenues
2. Bingo.com post second quarter loss
3. No dividend from 888
4. Ladbrokes Gives Hope To The Bingo Industry In Their First Quarter Financial Figures.
5. Dragonfish expands in poker field