The online casino and poker operator provided a trading update for the first quarter 2006 announcing a 42% increase up to $84m of net gaming revenues. Casino revenues accounted for $45m, up 15% year-on-year, while poker revenues rose 95% to $39m.
888 said the number of active members was up 23% to 319,374 on the previous year. The largest increase came from poker players, up 33% to 238,427, while casino players at 80,947 were only marginally up.
The monthly poker rake (rake from ring games plus tournament fees) in March 2006 was 66% higher than March 2005. The average quarterly net gaming revenue per active casino member was $554, up from $419 in Q4 2005, while revenue per active poker member was $162 compared to $156 in the previous quarter.
888 said it had a positive start to the year with an improvement in net margins, although it added that the first quarter is seasonally strong and anticipated margins more akin to historical levels for the second and third quarter.
“Growth in the US continues yet we are growing faster out of the US, gradually reducing our dependence on the territory in line with the company\’s long term strategy,” said the company.
After the end of the quarter, the group released a new poker product, which is expected to drive poker growth, and expanded its platform offerings with the release of the casino product to mobile phones. In April, 888 received increased media exposure driven by the 17 day 888.com World Snooker Championship and the progress of Middlesborough FC to the UEFA Cup final.
“We continue to drive our business for long term sustainable profit and overall we remain confident of making good progress in the current year,” 888 concluded the trading update.
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