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888 profits rise despite UIGEA
Message was posted: 09:06 Sep 23rd, 2007

User: Sandcastles Rank: Casino Gold: 15110CG Contributor rating: 81480 Status: Offline

888 profits rise despite UIGEA 888.com have reported a 298 per cent jump in first-half pre-tax profits from continuing operations. Following the announcement in July that 888 figures were hitting all management targets, the company has today announces their profits before tax from its ongoing businesses climbed to $19 million (£9.36 million) in the six months to the end of June. That compared to profits of just $5 million (£2.46 million) for the corresponding period in 2006. However, despite restructring operations in the wake of the UIGEA, 888’s withdrawal from the lucrative American market has ultimately slashed its profits. Last year, before the ban came into force, the Gibraltar-based firm reported pre-tax profits of $48 million (£23.7 million). Gigi Levy, chief executive officer of 888, said that despite losing the majority of its customers and 55% of revenues after the UIGEA, “the turnaround we had begun to achieve at the full year (2006) has been successful and we have maintained our track record of profitability”. Mr Levy said that 888 had started the second half of 2007 strongly, achieving “record” turnover in July – traditionally one of the seasonally weakest months of the year. Levy added that the company had based its success on the same strategic principles that had made it successful in the past, “acquiring and retaining customers by delivering a compelling, localised, innovative, unique and entertaining customer experience while being mindful of the complex regulatory environment in which we operate and the necessary social responsibilities that come with our industry”. As reported on casinowire in August, part of this strategy includes the launch of flash videos to increase player entertainment whilst at their tables. Meanwhile 888, whose websites include Pacific Poker and Casino on the Net, confirmed that it continues talks with US authorities over a possible retrospective prosecution. According to the company it is “still too early to predict the outcome of the negotiations”, which reportedly concern the taking of bets in the US prior to the implementation of the UIGEA ban of online gaming websites there. The unlawful internet gambling enforcement act effectively banned online gaming companies from trading in the US by barring the transfer and handling of payments from such activities. CasinoWire.com