888.com Rakes in Strong Fourth Quarter

Thanks to a sharp increase in poker revenues, online gambling leader, 888.com reported a successful final quarter to 2005. The company said the new year has started out strongly, as well.

Revenues from its poker room, Pacific Poker, climbed 22 percent from the previous quarter, to $36 million. This is a massive 138 percent increase from the same quarter a year ago. Casino revenues only rose 1 percent from the third quarter, but they were 19 percent higher than the year before, totaling $41 million.

Interestingly, CEO John Anderson said that even though poker signups have increased, U.S. customers now only account for about 50 percent of the company’s poker playing base. Because of the fuzzy legal issues surrounding online gambling in the U.S., 888 is pleased to see this reliance on the country decrease.

Anderson said that the company is looking to purchase an online sports book this year.

"I need that for customer retention and for organic growth," he said. "I'm looking, but I'm not talking to anyone."

But, just as he is trying to diversify away from the United States, he is also looking globally for the sports betting acquisition. He also said 888 will not take bets from Americans.

Despite the good news, 888 shares fell almost 5%, likely a result of profit taking.

Originally published February 2, 2006