888.com Profits Drop Dramatically
888.com has been one of the most successful online gambling companies in the world over the past decade. Unfortunately for 888 Holdings, it looks like this remarkable period of success is taking a big nosedive since the company’s pre-tax profit fell by 56% to $4.3 million during the first half of 2010. This sharp loss in profits has forced 888 Holdings to withhold dividends this quarter, and reorganize their business structure.
888 is currently trying to enact measures that will cut their operating expenses by $6 million in addition to revamping marketing efforts too. The software has also undergone major changes as seen by the online poker software, which ditched the old green look in favor of a sleeker, black design.
888 Holdings is blaming their problems on difficulties seen in the internet poker market where revenues are slightly down across the board. The drop in 888Poker has become even clearer since 888Bingo overtook poker to become the company’s main source of revenue.
Gigi Levy, the CEO of 888 Holdings, addressed the problems that have plagued his company during the first half of 2010 by saying, “Our business experienced a difficult first half against the backdrop of a challenging economic environment.” He continued by saying, “In order to continue investing for future growth and to support potential acquisitions, the board has decided not to declare an interim dividend at this time and finalize the full-year dividend when the full-year results are available.”
While some people might be wondering about 888 Holdings’ future, Levy is very confident that his company will survive the turmoil as he stated, “We remain confident in the underlying fundamentals of the business and believe the move of 888, and the industry, to become a locally regulated gaming-entertainment operator, presents significant opportunities for growth and merger and acquisition activity.”