888 - the online gambling group, reported a 6 per cent rise in full year pre tax profits as increasing revenues from its casino business offset a decline in its poker division.
The group gave a positive outlook for 2009 as it announced a deal to provide online casino and poker services to the Racing Post, the horse racing industry trade magazine.
888 reported a pre tax profit of around £34 million for 2008 as revenues jumped by 20 per cent to approx. £200 million.
Gigi Levy, 888’s chief executive, acknowledged he was operating in a difficult market but said he was confident he could continue to grow the business as a result of the deal with the Racing Post and the 14 new customers it signed agreements with last year. These include an agreement to run the online casino and poker business of Sportech, the football pools operator.
“Despite the difficult economic circumstances during the last few months of 2008, our underlying business remained strong … current trading to date in the 1st quarter has been stronger than in December,” Mr Levy said.
“While we are encouraged by this positive trend, the broader economic climate remains challenging and overall revenue in Q1 is expected to be slightly lower than the 4th quarter,” he added.
888s casino revenues jumped by 14 per cent to around £135 million in 2008 as it launched a range of new games. Poker sales declined by 4 per cent to £80 million as the recession prompted regular players to gamble less.
Under the partnership agreement with the Racing Post, 888 will set up and run a Racing Post branded for the magazine that will launch in the second quarter of the year. 888 did not give financial details about the deal.
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