888 Holdings predicts online gambling comeback
Posted by Bev Freeman on 07 Aug 2009 at 09:08
Bosses at 888 Holdings, one of Britain's biggest online gambling companies, have said growth could return to the industry next year as consumers start spending again.
Bloomberg reports the company is forecasting sales expansion of more than 20 per cent next year.
Online gaming has been one of the industries hit by a drop in consumer spending thanks to the recession.
During the second quarter 888's operating income dropped 12 per cent to $61 million compared to a year earlier.
Bloomberg said a regulatory news service statement added active poker and casino customers dropped eight per cent to 180,000.
Quoted by Bloomberg, chief executive officer Gigi Levy said: "We feel a lot more confident the industry’s going back to its normal growth trend, rather than continuing to be hurt by the recession.
“We’re looking at Q1 as the lowest point, and aiming to grow from there.”
The firm is also looking to start operations for other firms in an effort to balance out a slowdown in poker and casino gambling.
888 is also launching a bid to draw female customers to its games, especially in Europe, through bingo and other formats.
888 also said income and player numbers bottomed in the first quarter, according to Bloomberg.
First-half sales were hit by the strength of the dollar against the Euro and pound this year.
Towards the end of the second half the pound slipped 17 per cent against the dollar over the previous year's equivalent period, and the Euro 11 per cent, according to data from Bloomberg.
The financial news provider reported the firm has 22 contracts with other firms to start online gambling operations for them. It is also in talks with television stations, media companies and state-owned lotteries in an effort to launch joint projects.
Other plans include introducing online bingo outside of Britain and the aim of acquiring European companies or developing new games to target female customers.
Levy also told Bloomberg gambling online, which was once known to be male-dominated, is almost now used just as much by women thanks to the growth of bingo on the internet.
