Last year was decidedly mixed for online gaming company
The sharp rise in revenue was driven by a combination of regulatory pressure on US poker sites and 888's heavy marketing spend of over $100m, which helped attract 330,000 new casino and poker players. This was reflected in a 27 per cent rise in casino revenues to a record $148m and 58 per cent growth in poker revenues to $60.6m, well above 2009 levels. The company's emerging offering, which includes the sports book, increased revenue by 35 per cent to $21.6m.
In addition, 888 has started to use its technological expertise to offer gaming services to US partners via its Dragonfish business-to-business division where deals with Caesar's Interactive helped boost revenues by 16 per cent to $46.9m.
Newly installed boss Brian Mattingley said current revenues are running ahead of a record fourth quarter so broker Peel Hunt is pencilling in 2012 adjusted EPS of 5.8¢ and notes the risk to forecasts are on the upside.
|ORD PRICE:||61.5p||MARKET VALUE:||£214m|
|TOUCH:||61-62p||12-MONTH HIGH:||63p||LOW: 28.25p|
|DIVIDEND YIELD:||nil||PE RATIO:||162|
|NET ASSET VALUE:||35¢*||NET CASH:||$36.8m|
Shares in 888 Holdings are now priced on 17 times earnings estimates which is a hefty premium to rivals and now factors in the good news. Hold.
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