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Gambling: 888 Cautions on Earnings
5/28/10 - The Gibraltar-based online gambling group 888.com had disappointing news as the week ended, noting that it expected full-year profit to be significantly lower than market expectations.
The online betting company rationalised the drop in trading by pointing to the impending soccer World Cup, which is expected to exacerbate a situation in which the number of internet poker players at 888 sites has declined and currency movements have had an adverse effect.
The intense global interest in watching World Cup matches beamed from South Africa is likely to keep punters away from online casino, bingo and poker gaming and glued to television screens, whilst there had been an 18 percent decline in the daily average numbers of poker players using the group's sites between January and May 2010, 888 reported.
The decline in poker has been reported by other online poker companies that have eschewed US business, leaving the field clear for major operators like Poker Stars and Full Tilt Poker, which continue to accept US action.
888 also revealed that the weakness of the Euro and Pound Sterling against the US Dollar has exacerbated its difficulties. For example, May revenues would have been $1.9 million higher had exchange rates remained at the level seen in January. For the year to date, currency movements have adversely impacted total revenue by about $5 million.
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