888 Holdings plc
14 September 2006

888 Holdings Public Limited Company

('888' or the 'Company')


Interim Results for the six months ended 30 June 2006





888, one of the world's most popular online gaming entertainment companies,
announces its interim results for the six months ended 30 June 2006.


Financial Highlights


Profit before tax* up 88% to $48.0m (H1 2005: $25.6m)
Net Gaming Revenues ('NGR') up 32% to $163.5m (H1 2005: $123.7m)
Profit before tax* margin up to 29% (H1 2005: 21%)
Operating expenses % of NGR down to 25.6% (H1 2005: 28.0%)
Cost per acquisition** of US$165 (H1 2005: US$200)
Net cash generated from operating activities up 109% to $56.1m (H1 2005:
$26.8m)
Basic EPS* up 89% to 13.8c (H1 2005: 7.3c)
Interim dividend of 4.5c per share
Special dividend of 4.0c per share


* 2006 - excluding share benefit charges


** Excluding customers recruited on a revenue share basis.


Operational Highlights


Geographical expansion outside US - 48% of NGR from non-US territories
and 67% of new real money sign ups from non-US territories


Rapid growth in NGR in the UK up 61% and Continental Europe up 16%


Increased yields per member from Casino and Poker divisions


Continued technological innovation


Continued investment in the 888 brand through sports sponsorships
including two new football sponsorships with Sevilla FC and Toulouse FC in
addition to the World Snooker Championship and a third year with
Middlesbrough FC


Commenting, John Anderson, CEO of 888 said:


'These are excellent results and represent a record performance of profitable
growth. We have delivered on all our flotation goals.


Trading during the first 10 weeks of Q3 is in line with management expectations
and we are on track to achieve a satisfactory outcome for the full year.

As of 31 December 2006, I shall step down as CEO and take the role of
non-executive Director. The current COO, Gigi Levy will succeed me as CEO.
Gigi is an excellent, experienced individual who is more than capable of taking
on this challenge.

I am proud to have led 888, since 2000, through its formative years into the
success it is today. Over the past six years, 888 has been a pioneer in the
online gaming industry.'



An audio replay of the presentation to analysts will be available from the
investor relations section of 888's website (
http://www.888holdingsplc.com

StockMarketWire.com

Online gaming group 888 said during the first half-year it anticipates announcing EBITDA for the period significantly ahead of the prior year period.

Whilst the outcome for the full year will be dependent on the Company's trading during the second half, the Board continues to look forward with confidence.

888 will release its results for the first half on 27th August 2014.

StockMarketWire.com
Online gaming group 888's revenue was $111m in the second quarter - an increase of 15% year on year.

B2C revenues were up 11% at US$95m and B2C Casino revenue was US$53m, an increase of 15% year on year, capitalising on best in class CRM and back office technology.

B2C Poker revenue rose by 2% to US$23m, maintaining the group's no. 2 position in global liquidity rankings.

Chief executive Brian Mattingley said: "I am pleased to report that 888 has delivered another strong performance in the second quarter which, in combination with our very good start to the year, has once again resulted in record-breaking revenue for H1. This outcome has been driven by strong performances across both our B2C and B2B lines of business and is testament to our exceptional brands, technology, marketing and CRM systems. Whilst the outcome for the full year will be dependent on trading in the second half, we continue to look forward with confidence as we further develop the business."

StockMarketWire.com
Online gaming entertainment and solutions provider 888's first half revenues rose by 13% to $225.1m but pre-tax profits fell by 4% to US$34.0m due to the impact of FX.

The group said its record performance was driven by strong growth across B2C and B2B lines of business and adjusted earnings before interest, tax, depreciation and amortisation rose byu 27% to $49.0m.

Chief executive Brian Mattingley said:

"888 has delivered another excellent set of results in what has again been a record-breaking period for the business. Revenue growth has been driven by strong performances across both our B2C and B2B lines of business which reflects our exceptional brands, technology, marketing and CRM systems as well as the passion of our highly skilled team.

"We have delivered growth across all key product verticals, with Casino the standout performer delivering another period of double-digit growth. We are delighted by the turnaround of our improved Bingo business and 888sport has delivered an outstanding performance by more than doubling revenue year on year reflecting the strength of our re-launched offer. Whilst the outcome for the full year will be dependent on trading in the second half we continue to look forward with confidence as we further develop the business."

888 also announced that Richard Kilsby intends to retire as Non-executive Chairman following the company's 2015 Annual General Meeting. At the same time, Brian Mattingley will step down as Chief Executive Officer, and will be appointed as Executive Chairman of the Board.

Permira Sees 888 as Possible Buyout Target
Private Equity Firm May Consider Bid, But Any Interest Is Preliminary. New licensing and tax regime for online gaming in the U.K. is clearing the air around the sector, and making one of the industry's biggest players, 888 Holdings a potential buyout target.

British private-equity firm Permira sees the online gaming company as a potential target and may consider a bid itself, according to people familiar with the situation. Two of these people said Permira is actively looking at 888, though any interest is preliminary.

Peel Hunt comment:
Upside for take-private? Unlike bwin.party, which has significantly underperformed as a business, 888 is at the top of its game; while there may be some opportunity to take a bit of cost out, it is not material. The upside would come from the private equity backer being confident that 888 could materially offset the c$23m-25m impact of the point-of-consumption tax and that the US position can move from losses into profit. Both of these are possible but, once a premium is paid, the risk-reward doesn’t look overly compelling. Of course, 888 might just be the first step in a more ambitious consolidation play that could also involve bwin.party.
Sector consolidation likely: While we think a take-private is unlikely, industry consolidation is not. As 888 is a significant player, we would expect it to take part in broader industry consolidation. The powerful backers and finance houses behind Amaya’s acquisition of PokerStars (c12x EBITDA) show that there is appetite for the online gaming sector and, perhaps more interestingly, this includes unregulated as well as regulated earnings. At the PokerStars take-out multiple, 888 would be valued at c160p."

StockMarketWire.com
Online gaming provider 888's group revenue rose to an all time record of US$114m in the third quarter - an increase of 22% year on year.

B2C revenues rose to US$98m - an increase of 19% year on year - while B2C Casino revenues increased to US$56m - up 23% year on year.

B2C Poker revenues were 3% up at US$23m as the group continued to maintain its No. 2 position in global liquidity rankings.

B2C Bingo revenues rose to US$11m - an increase of 9% year on year, continuing the recovery of its Bingo operations.

Other highlights:

- Q3 revenue B2C Emerging Offering at US$9 million (Q3 2013: US$5 million), an increase of 84% year on year, lead by strong Sport performance, reflecting a successful FIFA World Cup and leveraging our newly integrated Sport platform capabilities.

- Q3 revenue B2B at US$16 million (Q3 2013: US$11 million), an increase of 41% year on year driven by US operations and Bingo

- Number of active customers B2C Casino and Poker at 584,000 (Q3 2013: 498,000), an increase of 17% compared to Q3 2013

- As at 30 September 2014, 888 had 17.3 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 16% from 30 September 2013

Chief executive Brian Mattingley said "I am delighted to report that 888 has continued its strong performance in Q3, delivering an all time quarterly revenue record of $114m. This was driven by an outstanding performance from Casino, reflecting our leading product and superior technology, as well as impressive growth in Sport, our B2B business and Bingo. "We continue to build customer numbers reflecting the core strengths of the 888 brand, our leading product offer and CRM systems. With our highly skilled and innovative team, we continue to look forward with confidence as we further develop the business."

Pre-Close Trading Update
888 today reports on trading prior to entering the close period in respect of its preliminary results for the year ending 31 December 2014.

Since the announcement of 888's Q3 IMS and KPIs on 4 November 2014 the Group has continued to perform in line with management's expectations. 888 remains confident of meeting management expectations for full year adjusted EBITDA*.

StockMarketWire.com
888 Holdings has confirmed that it has received an approach from William Hill over a possible offer. 888 says there can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be forthcoming.

888 says the company's shareholders will be kept informed of relevant developments and a further announcement will be made as appropriate, but in any event by no later than 28 days from today.

StockMarketWire.com
888 and William Hill have terminated their talks due to a significant difference of opinion on value with a key stakeholder. 888 confirmed on 10 February that it had received an approach regarding a possible offer for the company by William Hill but that there was no certainty that any firm offer would be made nor as to the terms on which any firm offer might be forthcoming.

888 says the board and the representatives of the principal shareholder trusts, together with their respective advisers, have had a number of discussions with William Hill and its advisers concerning a possible recommended offer, valued at 200 pence plus a 3 pence dividend per share.

But it says: "Due to a significant difference of opinion on value with a key stakeholder, it has not been possible to reach agreement on the terms of a possible offer and the board of the company has agreed with William Hill to terminate discussions."

Chief executive Brian Mattingley said: "The Company is in good health and continues to trade comfortably in line with expectations. The Company will announce its full year results on 24 March 2015 and the Board of the Company looks forward to the future with confidence."

Panmure Gordon note:
"888 Holdings has today announced the termination of discussion with William Hill, with an offer suggested to be 203p per share (including 3p dividend) set to be recommended by the board. However, due to a significant difference of opinion on value with a key stakeholder, it has not been possible to reach agreement on the terms and as such discussions have been terminated. At the suggested offer price 888 would be valued at a market capitalisation of £723m and represent a takeout multiple of 25.5x 2015E EPS and 16.8X 2015E EBITDA.

We retain our Sell recommendation on 888 and 96p price target. We believe competition will increase significantly in the UK post the introduction of the Point of Consumption Tax, resulting in a significant slowdown of revenue growth for 888, whilst we believe the valuation remains aggressive given the high proportion of unregulated revenue (c.40%)."

I believe LAD had looked at buying '888' sometime ago, with this deal failing other smaller players may come into view as t/o candidates. There does appear to be too many players in the betting arena.
2517

888 announces its audited annual financial results for the year ended 31 December 2014.

Financial Highlights
·
Revenue increased 14% to US$455m (2013: US$401m)
·
B2C Revenue increased 11% to US$391m (2013: US$352m)
·
B2B Revenue increased 32% to US$64m (2013: US$48m)
·
Adjusted EBITDA* increased 33% to US$101m (2013: US$76m)
·
Adjusted EBITDA* margin increased to 22.1% (2013: 18.9%)
·
Profit before tax increased 28% to US$68m (2013: US$53m)
·
Cash generated from operating activities increased 24% to US$112m (2013: US$90m)
·
Corporate cash net of customer liabilities increased 58% to US$96m (2013 US$60m)
·
Final dividend at 4.5 cents per ordinary share per policy (2013: 4.0 cents), and due to strong performance the Board is recommending an additional one-off dividend of 7.0 cents per share (2013: 7.0 cents), bringing the total dividend per share for the year to 15.0 cents per share (2013: 14.0 cents)
·
Adjusted EPS* increased 16% to 19.2 cents per share (2013: 16.6 cents)
·
Basic EPS increased 13% to 16.1 cents per share (2013: 14.2 cents)
·
As at 31 December 2014, 888 had 17.9 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 15% from 31 December 2013


Operational Highlights
·
Mobile embedded and driving growth across product verticals now representing 33% of UK revenue
·
Continued outperformance in Casino reflecting market-leading product and CRM
·
888Poker bucks negative industry trends and maintains No. 2 position in global poker rankings
·
Spectacular growth from 888Sport including strong FIFA World Cup
·
Further excellent progress in Spain including launch of Sport in H2
·
Encouraging trends in Italy following launch of mobile in Q4
·
B2B growth from Dragonfish including the addition of 13 new Bingo skins


Recent Developments
·
Successful deployment of shared poker network across states of Delaware and Nevada in March 2015 creating significant competitive edge for 888 and its operating partners.

Brian Mattingley, CEO of 888, commented:
"2014 was another record-breaking year for 888 during which we again delivered strong growth in revenue and profitability. This outstanding result reflects the fundamental strength of our business and the continued execution of our focused strategy. This is underpinned by our strong brands, exceptional technology and industry-leading marketing systems.

Our core Casino product delivered another outstanding performance reflecting our strength and heritage in this vertical, while 888Poker cemented its position at number two in the PokerScout global rankings at the year end. The outstanding 115 per cent revenue growth from 888Sport was an undoubted highlight of 2014 and we continue to see very exciting growth opportunities in this vertical.

Trading during the first quarter of the year has been in line with our expectations with significant increases in new customer recruitment as well as increases in deposit level and bet volumes. Average daily revenue during the quarter to date was 6 per cent lower than the previous year, and on a constant currency basis and excluding the impact of VAT, which from 2015 is deducted from revenue generated in certain jurisdictions, the performance was 7 per cent ahead.

Whilst the business faces external challenges in the form of Point of Consumption Tax in the UK, VAT in certain jurisdictions and adverse foreign exchange movement from a strong US Dollar, I am confident that the Group is well placed to take advantage of opportunities that regulatory change opens up to companies such as 888.

I am delighted with 888's record achievements in 2014, and I would like to take this opportunity to thank each member of our dynamic and talented team for their fantastic efforts during the year."

StockMarketWire.com
Online gaming group 888 has confirmed it has made a takeover approach for bwin.party digital entertainment.

The company said the board had noted press speculation concerning a possible offer and said it believes that there is significant industrial logic in a combination of 888 and bwin.party.

Due to the size of the proposed transaction, it would require the approval of 888 shareholders. 888 shareholders representing approximately 59% of 888's share capital have irrevocably committed, subject to customary conditions, to vote in favour of the proposed transaction.

888 stresses there can be no certainty that the submission of this proposal will lead to the company being selected as the proposed acquirer of bwin.party or, in turn, completing a transaction. A further update will be provided in due course.

Canaccord Genuity lifts 888 Holdings to buy from hold, target raised from 166p to 176p.

"888 and Bwin have announced they have reached agreement on the terms of a recommended offer, whereby 888 will pay 104.09p per share (lower than the GVC offer of 110p per share) to acquire the entire issued share capital of Bwin. Bwin shareholders will receive 39.45p in cash and 0.404 888 shares (with a mix and match facility available). Synergies are estimated to be on less than $70m (by 2018) and the acquisition is anticipated to be EPS enhancing in year one. Following today's acquisition we upgrade 888 from Sell to Hold and increase our target price to 150p (from 96p)."

Numis note today:
"● 888 expects cost synergies of not less than US$70m before the end of FY18. Cost synergies are expected to be extracted from, inter alia: rationalising duplicated costs; reduced overall investment in duplicated technology; economies of scale; and, reduced administration expenses.
● Revenue synergies are not quantified but are expected by 888 to be derived from: cross-selling bwin.party's sports product to 888 customers; the application of 888's "industry-leading back office and CRM systems for bwin.party's existing customer base"; and, from the benefits of improved liquidity in poker.
● Possible spin out of bwin.party "Studios". Post-deal, 888 indicates that it could spinout bwin.party's "Studios" technology business with shares being distributed to 888 shareholders. If Studios has acquired sufficient critical mass and is spun out, it would continue to provide B2B services to existing customers and seek to add new ones.
● Greater scale and reach. Post deal, 888 will have revenue of over US$1bn and be a leading online gambling operator in Belgium, Denmark, Germany, Italy, Spain and the UK and will be licensed in 13 jurisdictions. There is relatively little overlap: 888's core market is the UK whereas Germany is bwin.party's largest single market. bwin.party's principal product is sports betting whereas 888 is more focussed on casino and poker.
● 888 expects the transaction to be earnings enhancing for 888 shareholders in the first full year of ownership "on the basis of the anticipated cost synergies". The cash component of the offer will be financed by 888 through a new US$600m facility. Completion is expect in late 2015 or early 2016.
● GVC proposal not sufficient. GVC's proposal had a headline value of 110p per share. bwin.party describe it as having "many attractive features" but said that it also carries "additional execution risks". The board found 888's offer with its slightly lower headline value provided "a higher degree of certainty". There is a break fee of £5.7m payable to 888 by bwin.party if the recommendation of the board should be withdrawn. If 888 acquires bwin.party it will create a materially larger business with cost and revenue synergies to extract. There will be a multi-year plan to extract those synergies while optimising the portfolio of businesses with a spin out of Studios being high on the agenda."

StockMarketWire.com
888 reports record revenues of US$262.0m in the six months to the end of June - up 19% on last time.

B2C revenue increased by 21% to US$229.5m (H1 2015: US$189.6m) and Casino revenue increased by 31% to US$137.4m (H1 2015: US$104.9m). Sport revenue increased by 63% to US$25.0m (H1 2015: US$15.3m).

Revenue from regulated markets increased 29% and represents 63% (H1 2015: 58%) of total.

Adjusted EBITDA increased by 8% to US$44.1m (H1 2015: US$40.9m); EBITDA increased by 36% to US$38.2m (H1 2015: US$28.0m) despite adverse currency movements of US$3 million.

Profit before tax increased by 39% to US$27.8m (H1 2015: US$20.0m).

Interim dividend of 3.8c per share is up from 3.5c last time.

Chief executive Itai Frieberger "888 has delivered a very encouraging performance in H1 2016, resulting in a 19% increase in Group revenue to a record $262.0 million. This strong outcome was driven by outstanding momentum at 888Casino and 888Sport where we achieved impressive revenue increases of 31% and 63% respectively.

"In line with our strategic focus we have made further excellent progress developing 888 in regulated markets and have grown regulated revenue by 29% against the prior year, reflecting strong performances in the UK, Spain and Italy as well as 888's recent successful launch in Denmark.

"888's continued success is built on our first class technology and core expertise in CRM, marketing and analytics. These strengths, along with the fantastic efforts of our highly skilled and dynamic team, mean that the business is in excellent shape to deliver long term sustainable growth. Trading in Q3 has started well with average daily revenue until 27 August 2016 15 per cent. above strong previous year comparatives and 22 per cent. higher on a like for like basis. With this strong momentum the Board remains confident of delivering against expectations for the full year."

StockMarketWire.com
Online gaming entertainment and solutions provider 888's revenue increased 13% to US$520.8m in the year to the end of December and by 18% on a constant currency basis.

B2C revenue increased 15% to US$460.2m (2015: US$399.4m) - up 20% on a constant currency basis.

Casino revenue rose by 21% to US$279.3m (2015: US$230.6m) - up 26% on a constant currency basis.

Revenue from Sport increased 49% to US$51.9m (2015: US$34.8m) - up 58% at constant currencies.

Adjusted EBITDA rose 12% to US$90.2m (2015: US$80.6m); on a constant currency basis adjusted EBITDA increased 24% to US$100m.

Adjusted EBITDA margin remained stable at 17.3% (2015: 17.4%) or 18.3% at constant currencies.

The board has recommended a final dividend of 5.1c per share (2015: 4.0c per share) due to the strong results and additional one-off 10.5c per share to bring the total for the year to 19.4¢ per share (2015: 15.5c per share).

Chief executive Itai Frieberger said: "2016 was another fantastic year for 888 during which we continued to deliver very strong organic revenue and profit growth.

"This was again underpinned by further outstanding progress in Casino, Sport and across regulated markets.

"888's further expansion in the UK, Spain and Italy is a strong demonstration of the Group's ability to drive excellent growth and build leading market positions across regulated markets as the industry continues to head in this direction.

"Despite currency headwinds, revenue reached an all-time high of 520.8 million dollars and, at constant currency, increased 18% year on year to US$546.4 million.

"At the same time, the Group's underlying margins remain healthy and profit before tax increased significantly to 59.2 million dollars.

"These strong results demonstrate the truly outstanding underlying momentum in the business.

"In addition, the Group's strong free cash flow and confidence in the outlook has enabled the Board to propose a 25% increase in total dividend for the year.

"Current trading since the start of the year remains healthy with average daily revenue more than 11% above the previous year at constant currency.

"888 is a fast-growing operator with the majority of its revenue now generated from regulated markets.

"The Group is truly diversified with successful operations under 10 licences, four established B2C product verticals and an outstanding B2B offer.

"Underpinning 888's success we have a leading-edge technology platform and an exceptionally skilled team.

"The board continues to see a number of significant growth opportunities for 888 both in new and existing markets and we look forward to another exciting year of progress."

Having a good run of late. Just wonder if GVC will take them out one day ?

Very high volume today, perhaps news due.