Financial 888 Holding Shows Financial Improvement

While 888 Holdings and Ladbrokes are still in talks regarding a restructure of one of the largest online gambling companies globally, this is starting to look less like a rescue attempt and more like a very good investment for British gambling giant Ladbrokes. When talks started, 888.com was struggling under a burden of losses from poker and some very disappointing financial result. The tables have turned, poker income has improved due to the launch of a new product and some incredibly clever advertising, and as Gigi Levy – the CEO of 888 says, the numbers say it all, and they are delighted with the overall 18% sequential growth from the last quarter of 2010. In fact 888 poker popularity grew by a rather incredible 28% sequentially and both active poker and casino custom grew by 71% to 283,000.

Last weekend in the UK Sunday Mail, reports had it that talks had broken down due to Ladbrokes making a low offer that 888 Holdings was more than happy to refuse; while we have it from both of these companies that they are still talking, if things have changed somewhat.

888 Holdings business initiatives are holding firm and they are expecting additional growth as well as meeting forecasted estimates. The bingo business has and always will do very well; income in this division was up to a whopping £14.1 million, chiefly due to the acquisition of the brilliant Wink Bingo. Ear out payments are still being discussed with regard to the acquisition of Wink Bingo, and it appears as though 888 Holdings may be looking at a price tag of as much as £48 million. This massive purchase may also be one of the relevant factors for consolidation. But it also appears as though Ladbrokes is not going to get a bargain basement deal!

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