888 showing increased revenues from BTB
Wednesday, 7 April 2010 | Written by Rachel Collins
888 Holdings, the company behind many sites including the popular 888 Ladies online bingo site, has just released its 2009 fiscal year financial results, and analysts are pointing out the impact 888's B2B operations are having on its bottom line. In reality, 888's Dragonfish B2B division offset what could only be characterized as a dismal year for 888's consumer operations. Pre-tax profits in total for 888 during 2009 dropped 28 percent year over year to just over $34 million. Business to consumer top line revenue dropped 12% to $195 million, whereas revenue emanating from business to business sales increased by 33% to $51 million.
Gigi Levy, 888's Chief Executive Officer, commented that diversification into business to business sales proved prophetic, and he further trumpeted the strength of 888's business model which combines these two revenue sources. Apart from operating the well known 888 Ladies site, as well as 888 Bingo, 888 had signaled its increase in focus into the bingo arena with its purchase of Wink Bingo, and it found that the current environment for bingo sites was extremely competitive and necessitated promotions which served to greatly reduce margins.
One key Dragonfish contract was with Linden Labs providing payment services within its popular Second Life virtual reality game. 888's consumer operations appear to need a similarly creative deal to provide impetus to drive their ailing revenues. Levy pointed to new interactive offerings within their consumer division, and indicated that initial results during 2010 appear to be positive. Analysts will look to future earnings reports to see if Levy's optimism is justified.
Visit 888 Ladies
Players must be +18 To Play