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
888 holdings slashed its dividend after pre-tax profit slumped 68% to $18.8m for the year to the end of December amid a charge of $50.8m incurred during the period.

The firm said $45.3m of the charge related to potential past VAT matters and $5.5m was in connection with the UK Gambling Commission settlement.

A final dividend of 5.9 cents per share was declared, plus an additional one-off 5.6 cents per share, taking the total for the year to 15.5 cents per share, down from 19.4 cents per share the prior year.

Revenue rose 4% to $541.8m from $520.8m supported by gains in its sport and casino businesses.

Revenue from the core B2C business - includes casino, poker, sport, and bingo - increased 6% to $486.6m from $460.2m, but B2B reported revenue slipped 9% to $55.2m from $60.6m.

The firm warned that 'uncertainty exists' in certain territories in which it operates. In Germany, a subsidiary of the group was prohibited from offering online gaming services in the state of Baden Wurttemberg.

Current trading since the start of the year was said to be in line with management's expectations with average daily revenue 6% above the previous year, representing an 8% increase when adjusted for the withdrawn markets.

Numis today downgrades its investment rating on 888 Holdings PLC (LON:888) to hold (from add) and set its price target at 258p.

Peel Hunt today reaffirms its buy investment rating on 888 Holdings PLC (LON:888) and set its price target at 320p.

Numis today reaffirms its hold investment rating on 888 Holdings PLC (LON:888) and cut its price target to 245p (from 258p).

StockMarketWire.com
Gambling company 888 acquired Tuesday the remaining 53% stake in the All American Poker Network for $28m in a bid to boost the company's growth strategy in the US.

The transaction would give 888 independent control of its growth strategy in the US moving forward, the company said. This strategy included signing new partnerships and continuing to deploy the company's proprietary products and technology in new states as they regulate.

Under the agreement, 888 would pay $28m in cash, with $10m expected to be paid to the sellers on or about the date of announcement and the remainder of $18m paid by 31 March 2019.

'The acquisition of the remaining stake in AAPN is an important strategic step towards 888 achieving its exciting long-term potential in the US. Taking outright ownership of AAPN gives 888 additional operational, technological and commercial flexibility to develop innovative and exciting new partnerships and launch in new states - through both B2B and B2C channels - as and when future regulation allows. This acquisition places 888 in an even better position to take advantage of the significant growth opportunities in the US and create additional value for our shareholders,' said Itai Frieberger, Chief Executive of 888.

'The AAPN joint venture has been a very successful endeavour for the Group. It has afforded us the flexibility and financial capability to build a position in the regulated US market over the last five years whilst also investing in other global regulated markets.'

StockMarketWire.com
Online gambling group 888 said it remained confident that adjusted earnings for the full year would be in-line with its expectations, citing progress against strategic objectives in the second half of the year.

888 continued its momentum in sport, casino and across regulated European markets, driven by its ongoing focus on product enhancement with Orbit, 888's new casino platform.

Orbit was launched in May and subsequently rolled out across regulated markets.

In the UK, initial positive trends in revenue, highlighted in the group's half yearly report in September, had continued over the second half of the financial year so far, the company added.

The group continued to strengthen its position in the US, as it launched 888sport in New Jersey in September and acquired the remaining 53% stake in the All American Poker Network. 'During the period 888 has delivered continued progress against its strategic objectives,' chief executive Itai Frieberger said.

'The group has continued to focus on driving growth in regulated markets, enhancing compliance, and delivering exciting product innovation.'