888 Holdings Plc, the group behind the online gaming sites Pacific Poker and 888.com, gave investors a fillip yesterday when it reported a 34% increase in annual pre-tax profits, despite having pulled out of the US market in October when the Unlawful Internet Gambling Enforcement Act was passed.
Pre-tax profit for 2006 was $90.5 million, up $23.1 million on 2005; an impressive achievement given 888 had to overcome a 55 percent drop in revenue following their exit from the US market.
In order to cope with the blow of leaving the US market, 888 looked towards acquisitions and diversification; including a partnership with Rileys snooker club, the acquisition of a bingo business, the introduction of new casino games and the addition of blackjack software to the poker room.
888 Holdings was also recently the subject of speculation regarding a possible takeover by Ladbrokes but talks ended ‘amicably’ last month, allegedly because Ladbrokes was concerned about its legal position regarding 888 Holdings’ previous activities in the US.