The online casino operator provided a trading update for the second quarter of 2006 and cumulative results for the six months ended 30 June 2006.
Net gaming revenue in the second quarter stood at $80m, up 23% on the same period last year, but down 4% on the previous quarter. Revenue from casino in the second quarter was up 9% on the same period last year to $45m and revenue from poker was up 48% to $35m during the same period.
As expected given the effect of the World Cup and the historical seasonal pattern, net gaming revenue and the number of active members were both lower in Q2 2006 compared to Q1 2006. However, quarterly revenue per active casino member increased 13% over the previous quarter to $628. In poker, quarterly revenue per active member increased 3% on Q1 2006 to $162.
The number of active members in the second quarter was down 9% on the same period last year to 281,402. Casino active members were 71,242, 19% lower year-on-year. Poker active members were 210,160, 5% lower from a year earlier.
For the six months ended 30 June 2006, net gaming revenue was $164m, a 32% increase above H1 2005 revenues, with 67% of new real money sign ups coming from outside the US and non-US deposits representing 48% of total group deposits.
Half yearly revenue from casino rose to $90 million, an increase of 12% above H1 2005, while revenue from poker rose to $74 million, an increase of 69% above H1 2005.
The Board of 888 Holdings said overall trading for the first six months of the year has been in line with expectations with an encouraging first half despite the seasonally quieter second quarter which was additionally influenced this year by the World Cup.
888 continues its established long term strategy of geographic diversification and expanded product offering. The Directors remain confident about continued progress in the second half of the year.
Chief Executive John Anderson said 888 might take advantage of low share prices in the sector to buy a non-US facing sportsbook.
“I want a sports book, funnily enough, but it will be a sports book that doesn\’t take bets from America. I need it as a retention tool,” said Anderson.
“The guy who plays poker with us on a Sunday afternoon, also wants to put a bet on Manchester United versus Everton on a Monday night, and at the moment we can\’t give him that, so he leaves us and goes somewhere else,” he added. “So I need to give him that offer.”
Calculators
