The parent company of online poker room 888 Pacific Poker, 888 Holdings, is the latest online gambling business to release the results of their mid-year financial report. Like many other businesses within the industry, 888.holdings saw significant declines in their earnings and revenues for both their online casino and poker room from 2008 to 2009.
The report, issued by 888 Holdings on August 27th, documented a 13% decrease in overall revenue, down to $117.9 million midway from 2009 compared to $135.4 million for the same period in 2008. Casino revenue was down 20% from $69.8 million last year to $55.9 this year, but it was 888 Pacific Poker that saw the biggest drop in numbers. The online poker room saw revenue fall a full 35% in 2009, dropping from $40.2 million in 2008 to just $26.2 million in the period from January to June of this year. A statement released concurrently with the report attributed the decline to currency movements and the overall economic downturn, two issues numerous businesses within and without of the gambling industry have become intimately familiar with over the past several months.
While 888’s business to consumer ventures are struggling so far this year, the company saw massive gains in their business to business dealings. The introduction of a new dedicated business to business company operating under the name Dragonfish has worked out well for 888 Holdings so far. The official site for Dragonfish claims the site offers, “total gaming service,” and has brokered several major deals so far this year. Just a few of the big business to business deals recently conducted through Dragonfish include an extensive deal with the Racing Post to develop an online casino and sports book, the development of casinos and poker rooms in the Balkans and partnering with several small online bingo companies.
The revenue for 888 Holding’s business to business dealings were up an impressive 42%, ballooning from $17 million in 2008 to $24.3 million in the first half of this year. The performance of Dragonfish and a substantial revenue upswing for 888 Holdings’ emergent business offerings helped to temper their losses in their poker and casino businesses.
Chief Executive Officer of 888 Holdings, Gigi Levy, offered his own opinions on the company’s performance during the first half of 2009 in an official press release. “The first six months of trading for 888 in 2009 have demonstrated the strength of the combined business model that comprises a world class B2C operator and an innovative and comprehensive B2B service provider,” stated Levy. “While consumer sentiment is still weak and currencies remain volatile, we are trading solidly.”
The report also highlighted some of the recent developments with Pacific Poker over the past six months. Most notably, the site introduced a new version of their poker client with 25 new features and upgraded the overall design of the site. Some of 888’s other poker-related projects included the launch of pub poker leagues in the UK and Australia and the launch of a new poker reality show called “Poker Ashes”. The show pits online qualifiers from 888 Pacific Poker against top cricket players from the UK and Australia like Shane Warne.
The statement from 888 Holdings also looked towards the future of the online poker market, addressing the pending legislation to regulate and tax online poker in the United States. The company also mentioned the ongoing World Trade Organization as to whether or not the United States discriminating against European gambling companies. As of now, the European Union and the US have not reached a settlement regarding the issue, but the company cited the case as something it is going to be closely following in the coming months.
