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http://www.bloomberg.com/apps/ne ... 9A&refer=europe
April 8 (Bloomberg) -- 888 Holdings Plc, the second-largest U.K. online gambling company, said profit fell 54 percent in 2007 after a crackdown on Web gaming forced the company out of the U.S.
Net income dropped to $34.2 million, or 9.9 cents a share, from $74.5 million, or 21.8 cents, in 2006, Gibraltar-based 888 said today in a statement. About 85 percent of year-earlier profit came from activities that have now ceased.
888 cut jobs, purchased an Internet bingo operator and partnered with gaming companies including Rank Group Plc to reshape itself after losing 55 percent of sales when the U.S. barred foreign gaming Web sites in 2006's second half. Revenue climbed 36 percent last year excluding the U.S. as more European and Asian customers signed up, and 2008 has started ``well,'' 888 said today.
``With the first quarter seeing further growth, we feel comfortable nudging up our 2008 forecast,'' Richard Carter, an analyst at Numis Securities in London who advises buying 888 shares, wrote in a note to investors. He expects the company to earn $63.8 million this year before taxes, 1 percent more than before.
Last year's pretax profit more than doubled to $46 million excluding the U.S. withdrawal, beating Numis's estimate. Sales totaled $213 million, down 27 percent when American gamblers are included. 888 had 4.7 million accounts at the end of 2007, up 30 percent from a year earlier.
Pacific Poker
888 rose 3.25 pence, or 2.2 percent, to 150 pence in London trading. The stock has slid 14 percent from the price of 175 pence at which it was first sold to investors, less than the plunge of 82 percent by PartyGaming Plc, whose PartyPoker Web site competes with 888's Pacific Poker brand.
Annual revenue from casino games, the main contributor, increased by a third to $118 million last year outside the U.S., the company has said. Poker sales rose 18 percent to $81 million.
888 spent $32.4 million in March 2007 to buy the operator of bingo Web sites including Bingo Ballroom and started taking online sports bets from Italy in October. 888 and Rank, owner of the Blue Square betting Web site, unveiled their partnership in November and last month began accepting Internet sports wagers from six European countries including Germany.
``There is a high likelihood we will make another acquisition in 2008,'' Chief Executive Officer Gigi Levy said by telephone. ``We are looking at a few companies.''
888 now gets 85 percent of operating profit from the U.K. and other countries in Europe, where consumer spending is weakening as economies slow and inflation rises. Still, the company has been left unscathed so far, according to the CEO.
``We've never been impacted,'' Levy said. ``It's actually something people don't tend to give up in tough times.''
888 plans to expand bingo into Spain this year and is in talks with potential licensees, according to the statement. The company sponsors soccer club Seville in the country to help keep its brand in the public eye.
The company cut its second-half dividend to 5 cents a share, reducing the total for the year by about half to 6.8 cents. |
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发表于 2008-4-9 05:26
