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888 Revenues Dropping
11/10/09 - 888.com's b2b subsidiary Dragonfish performed sufficiently well to limit a decline in Q3 revenues at the online gambling group, but Management still posted a drop of 10 percent compared to Q3, 2008.
The company's interim management update this week reported financial highlights as:
* Total Operating Income US$61million during the historical seasonally quiet summer period
* Total Operating Income B2B (Dragonfish) at US$13 million
* Total Operating Income B2C at US$48 million, mainly from casino performance.
* Total Operating Income B2C Emerging Offering at US$6 million, a 44 percent increase compared to Q3 2008
* Total Operating Income B2C Emerging Offering during the first three quarters of the year at US$18 million (2008: US$9 million), a 99 percent increase
* Total Operating Income B2B during the first nine months of the year of US$37 million (2008: US$28 million), a 32 percent increase
* Quarterly Total Operating Income B2C per active Casino and Poker customer was US$248.
* Growth continued into Q4 with more than 8 percent increase in average daily revenue compared to Q2 2009.
Operational Highlights included:
* Pioneering GBP 8,888,888 Pirates Millionaire free spin slot machine launched in UK, coupled with TV campaign (see previous InfoPowa report)
* Dragonfish B2B deal with Harrah's announced in September, progressing on track to launch the WSOP and Caesars online casino and poker brands by next week
* Dragonfish launched poker and casino in the Balkans and signed an agreement with Tsogo Sun Gaming Group in South Africa
* Moon Bingo launched as a new standalone bingo network following the success of the skin on the Dragonfish network
Commenting on the results, chief executive Gigi Levy said: "We are pleased with the results achieved during the third quarter. Our B2C business showed resilience during the historical seasonally weak summer period and Dragonfish has continued its impressive growth. With Harrah's set to launch in coming days and a strong pipeline, we remain confident of reaching our targets.
"We are particularly pleased with the 99 percent growth achieved in our B2C emerging segment during the first three quarters of the year. Whilst Poker remains challenging the B2C business showed resilience during the third quarter. The fourth quarter started well and given that our various business initiatives are progressing as planned we expect to grow the business further during the year."
Investment in 888's offering continues, the statement reveals. The Casino client was released in three new languages, a new no-download Casino was introduced integrating, for the first time, the successful live dealer offering. In addition, 20 new games were added including the branded Cluedo, Cleopatra and Hulk Games. In Bingo 888 completed a new integration platform allowing rapid game deployment with 11 new side games already integrated, including the successful "X-Factor" product.
The group has approximately US$105 million cash equivalents (of which approximately US$35 million represent liabilities to customers) and has no debt.
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