888 Holdings has Record Half-Year Profit, Issues Warnings

LONDON – As reported by Associated Foreign Press: "888 Holdings PLC, the world's second-biggest online gaming group, reported a record first half profit in the six months to June, 88 pct
John Anderson, the CEO of 888.com will be stepping down at the end of 2006.  up on last year.

"Pretax profit excluding share benefit charges was 48 mln usd compared to 25.6 mln a year earlier while earnings per share rose 89 pct to 18.8 cents from 7.3 cent.

"Net gaming revenues were up 32 pct to 163.5 mln usd from 123.7 mln and pretax profit margin was up to 29 pct from 21 pct.

"Chief executive John Anderson announced he would stand down at the end of the year to be replaced by current chief operating officer Gigi Levy.

"Looking ahead the company said trading in the first 10 weeks of the third quarter is in line with expectations and it is on track to deliver a satisfactory full year outcome.

"But the company warned that if the Internet Gambling Prohibition and Enforcement Bill, currently being considered by the Senate, is passed in the US it may have a 'material adverse impact on 888's business'. In the six months to June 52 pct of the group's net gaming revenue was derived from customers based in the US.

"In the statement 888 added that it is closely monitoring the progress of the recent enforcement actions in the US against two directors of UK companies involved in sportsbetting and emphasised that it has no involvement in sportsbetting itself.

"888 said it would pay a special dividend of 4.0 cents a share and an interim dividend of 4.5 cents.