Trading Update and Q2 KPIs
888 Holdings plc
25 July 2006
25 July 2006
888 Holdings Public Limited Company ('888' or the 'Company')
Trading Update and Q2 2006 KPIs
888, one of the world's most popular online gaming companies, today provides the
following trading update for the second quarter of 2006 and cumulative results
for the six months ended 30 June 2006.
Highlights:
* Net Gaming Revenue in Q2 2006 - US$80 million, an increase of 23% above Q2
2005
* During H1 2006, 67% of new real money sign ups were recruited from outside the
US
* Net Gaming Revenue from casino in Q2 2006 - US$45 million, an increase of 9%
above Q2 2005
* Net Gaming Revenue from poker in Q2 2006 - US$35 million, an increase of 48%
(1) above Q2 2005
* Net Gaming Revenue during H1 2006 rose to US$164 million, an increase of 32%
above H1 2005
* In Q2 2006, quarterly Net Gaming Revenue per active casino member increased
13% compared to Q1 2006. In poker quarterly Net Gaming Revenue per active
member increased 3% compared to Q1 2006.
Key KPIs:
As expected given the effect of the World Cup and the historical seasonal
pattern Net Gaming Revenue and the number of active members was lower in Q2 2006
compared to Q1 2006. However, Net Gaming Revenue per active member increased
highlighting the high value and stability of our core member base and product
innovation strategy.
* Net Gaming Revenue in Q2 2006 was 4%(1) lower than Q1 2006
* Number of active(2) members in Q2 2006 was 281,402, 9% lower than Q2 2005
* Casino active members in Q2 2006 was 71,242, 19% lower than Q2 2005
* Poker active members in Q2 2006 was 210,160, 5% lower than Q2 2005
* In Q2 2006, quarterly Net Gaming Revenue per active casino member was US$628
compared to US$554 in Q1 2006. In poker quarterly Net Gaming Revenue per
active member was US$167 compared to US$162 in Q1 2006.
* As at 30 June 2006, 888 had 25.4 million registered member accounts out of
which 6.3 million were real money registered member accounts, representing an
increase in real money member accounts of 36% since 30 June 2005.
Key cumulative financials for the six months ended 30 June 2006:
* Net Gaming Revenue during H1 2006 rose to US$164 million, an increase 32%
above H1 2005
* Net Gaming Revenue from casino during H1 2006 rose to US$90 million, an
increase of 12% above H1 2005
* Net Gaming Revenue from poker during H1 2006 rose to US$74 million, an
increase of 69% above H1 2005
* During H1 2006, non-US deposits represented 48% of total group deposits
Trading Update
888 continues its established long term strategy of geographic diversification
and expanded product offering. Overall trading for the first six months of the
year has been in line with Board expectations with an encouraging first half
despite the seasonally quieter second quarter which was additionally influenced
this year by the World Cup. The Directors remain confident about continued
progress in the second half of the year.
The Company will announce interim results for the six months period ended 30
June 2006 on 14th September 2006.
Contacts and enquiries
888
John Anderson Chief Executive Officer +350 49800
Aviad Kobrine Chief Financial Officer +350 49800
Bell Pottinger Corporate & Financial
Nick Lambert/Christopher Hamilton +44 (0)20 7861 3232
Notes to Editors
888.com is headquartered and licensed in Gibraltar with offices in Tel Aviv,
Antigua and London. It has over 25 million registered member accounts in over
177 countries worldwide and play and customer support is available in up to 11
languages - 24 hours a day, seven days a week.
In October 2005 888's shares were admitted to the main market of the London
Stock Exchange.
888.com offers traditional casino products such as blackjack, roulette, craps,
baccarat, keno, slot machines, video, and a variety of poker games. Its main
poker offering is provided through the Pacific Poker brand which offers ring
games and tournaments.
Other offerings include a betting exchange (for non US members only), other
skill games such as checkers, backgammon and arcade games (888.tv) as well as
free poker school and other casino games through 888.info
The Group has its own R&D arm that is based in Tel Aviv and develops proprietary
software for exclusive use by 888.com. This enables the Group to continually
evolve and develop the software and systems to give customers a state of the art
gaming experience. It also provides a full back office management system that is
owned and controlled directly by 888. This ensures the company is not reliant on
third parties for its software.
888 have been at the forefront of moves to ensure that the industry is subject
to a high level of regulation. It was instrumental in the foundation of the
eCommerce and Online Gaming Regulation and Assurance (eCOGRA) initiative. eCOGRA
has established a set of best practice regulations and enforces them through a
combination of independent monitoring and inspection. Through the establishment
of eCOGRA, 888 has helped to create a regulatory framework that delivers safe,
honest and player-sensitive online gambling.
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(1) Rounded
(2) An active member refers to an individual member who had made a game-related
balance movement in a real money account in the relevant quarter.
This information is provided by RNS
The company news service from the London Stock Exchange