888 Holdings half year results

Online gaming provider 888 Holdings released its half yearly results for the period ending June 30, 2011 this week.
The company underwent a tumultuous first half 2011 with the resignations of chief executive Gigi Levy, Dragonfish chief David Zerah and managing director of the group’s b2c operations Adi Soffer- Te’eni.
Key Performance Highlights include:
–     Group revenue up 18 percent to US$ 154 million (H1/2010: US$ 130 million)
–     Revenue B2C up 18 percent to US$ 131 million (H1/2010: US$ 110 million)
–     Revenue from Casino US$ 69 million (H1/2010: US$59.3 million) up 16 percent with a 134 percent increase in the number of active customers to 159 000.
–     Revenue from poker US$ 24 million (H1/2010: US$ 19.6 million) up 22 percent with a 90 percent increase in active customers.
–     Revenue from bingo US$ 27.6 million (H1/2010: US$ 23.5 million) up 17 percent
–     Revenue from emerging offering US$ 10.2 million (H1/2010: US$ 8 million) up 28 percent
–     Revenue B2B (Dragonfish) up 16 percent to US$ 23 million (H1/2010: US$ 20 million)
–     Adjusted EBITDA increased by 59 percent to US$20 million (H1 2010 US$13 million).
Before share benefit charges of US$1.6 million (H1 2010: US$1.9 million), restructuring costs of US$4.9 million (H1 2010: US$2.2 million), exchange loss of US$3.1 million (H1 2010: income of US$1.4 million) and goodwill impairment of US$20.2 million (H1 2010: nil).
–     Real money registered customer accounts for casino, poker and sport up 21 percent to 9.6 million (H1 2010: 7.9 million)
–     Strategic review resulted in refocused strategy, designed to maximise revenues and expand profit margins
–     Successful launch in Italy of 888.it and a B2B partner following certification of 888 products with the Amministrazione Autonoma dei Monopoli di Stato (AAMS), the Italian regulatory authority
–     Further improvements to award-winning Poker platform, including the introduction of Pokercam and Teamplay
Brian Mattingley, Deputy Chairman of 888, commented: “This is a very strong set of results driven by good operating performances across our business lines. We have improved our offer, experienced good levels of new customer sign ups and activity has been at record levels. We are in good shape and, bolstered by our renewed strategic focus, are well positioned to take advantage of opportunities as they arise in newly regulated markets.
“The Board is confident that the Company will report a financial performance for the full year to 31 December 2011 in line with current market expectations.”
Despite 888’s strong half year results, the company made an accounting loss for the year after opting to take an impairment charge of over US$ 20 million on Mytopia, a social games development business it acquired last year resulting in an adjusted loss before tax of US$ 15.5 million, versus a profit of US$ 8.4 million in the first half of last year.
A company spokesperson said the decision was prompted by “reduced expected future income growth”.

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