888 Holdings Trading Within ExpectationsIt is safe to say that last year's expectations are a little more than slightly off from last year's expectations when it comes to the Internet gambling sector. Today, 888 Holdings said that trading was in line with expectations.
That is probably a vague term for We don't expect much and that's exactly what we got.
Still, it's a rosy announcement for investors looking for something positive. 888 Holdings cited an ``encouraging'' start to 2007 after introducing new games and recruiting more customers.
888 Holdings lost nearly 6%, and were down 7p at 115.5p last month following ended acquisition talks with Ladbrokes. The company's rollercoaster ride on the London Stock Exchange started last October when a law passed in the US that would essentially hold banking institutions liable for online gambling transactions made by bank-issued credit cards. 888 in fact lost about half of its sales following passage of that law and was forced to leave the US.
Things got off to a really rocky start early in the year when two Neteller co-founders were arrested in the United States. Neteller, a third party payment solution dealing almost exclusively in online gambling, was forced to leave the US market. While 888 Holdings no longer operated in the US, these actions against Neteller sent ripple effects throughout the industry as a whole.
"Trading is in line with expectations, and we continue to look forward to the future with confidence,'' Chairman Richard Kilsby said in the statement, released as 888 holds its annual shareholder meeting.
The company's shares fell 2 pence, or 1.7 percent, to 115 pence in London yesterday. They cost 175 pence each in 888's September 2005 initial public offering and plunged 26 percent on the first trading day after the U.S. ban was unexpectedly approved by legislators at the end of September.
888, sponsor of the World Snooker Championship, said last month that sales increased 16 percent in the first three months of 2007 from the last quarter of 2006.
Profit increased 55 percent last year as European customers played more online casino and poker games. The company, owner of the Casino-on-Net and Pacific Poker brands, now gets 45 percent of sales from the U.K. and 36 percent from the rest of Europe.
----
Related Articles:
Stocks Surge Following Hopes that Charges Will be Dropped Against NETeller
Former 888.com Director Summoned to France for Questioning
888 Holdings, Pacific Poker Sales Rise 12%
----
Christopher Costigan, Gambling911.com
Originally published May 30, 2007 9:05 am ET
