888 Online Casino Profit Drops | IXGAMES

One of the largest online gambling operators, 888 Holdings, released financial results for its first six months of operation for the year 2010. The numbers show a 23 percent year by year profit drop for the online gaming institution, the amount achieved after the 8.4 million USD has been subtracted for tax purposes. The calculated amount showed a 38 percent decrease in collections before expenses, interest, tax, depreciation, and amortization has been taken. The operating income for the casino started rising for the year, showing a 10 percent year on year rise. Believed cause The negative numbers for the first six months is mainly shouldered by the steadily increasing operation expense. Administration costs to run the business as well as selling and marketing expenses have started to soar this year, amounting to 11.2 million USD and 47.5 million USD, respectively. 888 statement The Chief Executive Officer for 888, Gigi Levy, issued a statement regarding the current state of online gambling. The CEO stated that a number of factors have resulted in the decline in revenue, citing the current economic environment and adverse foreign exchange movements. He also cited the 2010 FIFA World Cup as another factor in relation to the less number of poker and casino players during the second quarter. Levy revealed that 888 Holdings has already started corresponding actions in order to control the impact of the decline in the industry, adding that the technology, product divisions, and different aspects of the business will be re-examined and fine-tuned to set the company into a better business position in the oncoming years. Levy also said that some of the mentioned progress have already been achieved, resulting into contracts signed with both France and Italy. It appear like various 888 brands are being geared toward providing quality business to consumer needs in order to attract more players and retain customers. His statement further reveals that the company increased its research and development expense in order to produce better and innovative ideas that would attract public interest. Marketing expenditure has also been raised to reach a wider range of people or potential customers. Apparently, these improvements made by the gambling institutions were the ones responsible for the decline in earnings or revenue for the first half before interest, tax, depreciation, and amortization. According to the CEO, the mentioned actions were responsible for the boost in poker play for the first month of the second quarter, amounting to about 15 percent revenue increase. However, 888 Holdings has decided not to declare interim dividends at this time for future interests of the firm. Full year dividends will then be released once the results for the whole year are available. Levy was also quoted saying that they “will continue to innovate [their] business-to-consumer offering and attract and retain players to 888’s brands.”