Chips are down for 888

Chief executive Gigi Levy described the B2B operation as "the star of the show", as it grew revenues by 42 per cent over the year, to $24.3m (£15m), and accounted for more than 20 per cent of operating income for the first time. The division provides partners with the infrastructure and expertise to run branded online gaming services, and signed a strategic alliance with the Racing Post in the half. Mr Levy said the group is on the lookout for acquisitions, which could enhance the division's technology platform or accelerate partner growth. "It's not because we can't build it, but because we are in land grabbing mode," he said. Although 888 is returning some cash to shareholders via a special dividend of 2.6¢ a share, Mr Levy said there was plenty left to fund investment.

However, the strength in its B2B unit couldn't disguise a poor performance in 888's consumer operations, which provides online poker, bingo, casino and sports betting. Despite the launch of 'recession friendly' products and promotions, as well as new social networking features, revenues fell 18 per cent to $93.5m, as the downturn saw fewer players stake smaller amounts.

Broker Evolution Securities expects full-year pre-tax profits of $38.3m and EPS of 10.1¢ ($53.1m and 14.1¢ in 2008).

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