Gibraltar-based online gaming operator 888 Holdings has announced its financial results for the fourth quarter of last year showing an eight percent decline in total operating income when compared with same period in 2007.
The trading update revealed total operating income for the final three months of 2008 fell to $60 million from the $65 million it reported for the fourth quarter of 2007 while the figure for the entire year rose 21 percent to $263 million from $217 million.
Gibraltar-based 888 blamed the drop on adverse foreign exchange movement, challenging trading conditions and an ‘uncertain recessionary economic environment’.
888 is one of the world's most popular online gaming providers and revealed that net gaming revenues for the year from its ‘emerging offering’ rose 209 percent to $45 million from $14 million for 2007. In addition, net gaming revenues from its casino offerings were up 13 percent for the year to $134 million from $118 million while those from poker declined six percent to $76 million from $81 million.
It reported that the number of real money registered accounts grew 24 percent to 5.8 million for the year and said that it was on track to meet or exceed full-year market expectations.
'888 demonstrated tremendous progress during 2008 with a 21 percent total operating income growth despite a disappointing fourth quarter,” said Gigi Levy, Chief Executive Officer for 888.
“The prolonged and deepening economic downturn and volatile adverse foreign exchange movements meant unprecedented challenging trading conditions following the end of the summer holiday season. Players played less and we recognised lower revenue denominated in US dollars. However, this was partly mitigated by tighter cost control and cost savings given the group's high proportion of costs, which are denominated in non-US currencies.”