As the summer winds to a close, companies around the world have been updating shareholders, stock traders, and the general public about earnings during the second quarter of 2008. Among those reporting on Monday was 888 Holdings, which is traded on the London Stock Exchange under the symbol “888” and owns and operates the popular online poker room Pacific Poker. The stock’s earnings report showed growth across the board, led by a 36% increase in operating income in 2008 compared to the second quarter of 2007. 888 saw a jump of 5% from the first quarter of 2008. The company raked in $69 million in operating income last quarter. Let’s check out some of the other key stats released on Thursday.
Net Gaming Revenue (which 888 dubs “NGR”) was up 33% from the same time period last year, topping out at $67 million. This represented a 4% increase from the first quarter of 2008. The casino alone brought in $35 million, a growth of 27% from 2007. Pacific Poker’s revenue during the second quarter was a healthy $20 million, the same amount as in 2007.
The story from 888 surrounded the growth of what the company calls “Net Gaming Revenue from Emerging Offering,” which was up a colossal 376% to $12 million in comparison to the second quarter of 2007. CEO Gigi Levy stated, “Our various strategic initiatives are progressing well and given the good start to the third quarter and our clear business strategy we are confident of delivering future growth during 2008.” 888’s Bingo game and sports book were the money leaders in the emerging gaming markets.
Press releases such as those issued by 888 on Monday provide a unique glimpse into the key stats behind any publicly traded company. For example, Pacific Poker currently has 169,898 registered accounts. When added to the number of players in the casino, that figure jumps to 214,725. In general, the poker profitability was down in the second quarter. If you ask 888 why that is, the reason given is the Euro football tournament, which occurred in June. 888 claims that, rather than gambling, players were busy rooting on their favorite team. Levy explained, “We are delighted with our Q2 2008 results especially given that we achieved sequential quarterly growth during a period which is typically seasonally quiet throughout the Euro 2008 championship.”
Finally, 888 released its stats for the 2008 calendar year through the end of June. Total operating income was up 38% year over year to $135 million. Net gaming revenue was up 35% in comparison to the first half of last year to $132 million. Casino and poker revenues were up by 31% and 2%, respectively. Revenue from emerging gaming was up 680% to $19 million total. The company gives us a sneak peak into the third quarter: “The recently announced strategic deal with Sportech PLC is progressing as planned, the latest Poker Dome white label deal is already launched and further deals are expected to be announced later this year. In addition, the first wave of third party integrated games is expected to be launched in Q3.”
Pacific Poker doesn’t accept U.S. players, but offers several high-stakes tournaments throughout the week for customers from the rest of the world. They include an $80,000 Guaranteed tournament every Sunday at 19:35 GMT. It has a buy-in of $132. Monday through Saturday, Pacific Poker offers a $20,000 Guaranteed tournament that starts at 19:35 GMT. It has a buy-in of $55. Satellites for the $20K Guaranteed start at $2.20 if $55 is a bit much for your bankroll to stomach. There is a 100% deposit bonus up to $400 available, as well as a series of First Depositors Freerolls for newcomers.
At the close of trading on Monday, 888 was trading at ₤152.25 on the London Stock Exchange, down ₤1.50 on the day. It is near the top of its 52-week range, which is ₤102.75 to ₤169.00.