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

LONDON (Thomson Financial) - "Online gaming company 888 Holdings PLC reported a 37 pct rise in third quarter net gaming revenue to 52.5 mln usd, and said it is confident about its performance in 2007 and beyond.

888 said its fourth quarter trading has started strongly and that during the first 26 days of October, its average daily revenue in both Casino and Poker was about 11 pct higher than the daily average for the third quarter.

The company said its third-quarter net gaming revenue from Casino and Poker rose 24 pct to 47.6 mln usd.

Chief executive Gigi Levy said 888 is 'very pleased' with the performance, in what is traditionally the slowest quarter of the year.

Net gaming revenue in the third quarter was 5 pct higher than in quarter two with September being the company's best month since its enforced withdrawal from the US following the passing of the US Unlawful Internet Gambling Enforcement Act in Oct 2006.

Levi said this record month has been exceeded in October with 'growing momentum' seen following the launch of a TV advertising campaign in the UK and other targeted markets.

During the period, 888 launched its first sports betting operation in Italy. It plans further product localisation with the release of its software in 14 languages.

Punters will have access to over 40 casino games in all 14 languages."

LONDON (Thomson Financial) - \"888 Holdings PLC said it has entered into a partnership with Kamay Holdings Ltd, operating casino and poker under various brands and powered by 888.com.

This new offering will launch in the beginning of Jan 2008, the online gaming entertainment company said.\"

888 currently a 'hold' recommendation by 6 analysts on Selftrade.
Div yield predicted to be 3.78% this year, 4.59% in 2009.
I saw a price target of 155p (I think on Digitalook, but can't find the broker at mo) which has already been passed.
Looks like all the main gaming companies are producing reasonable results which seem to be unaffected by the current credit squeeze.

"Net gaming revenues from the casino arm were up 33 per cent to $118m, with poker 18 per cent ahead at $81m.
This year has also seen the launch of a new bingo brand, 888Ladies, and gaming partnerships signed with groups such as snooker hall operator Rileys.

Chief executive Gigi Levy said 2007 was a "year of transformation" for the group.

He added: "With many initiatives now underway, we see a bright future for the business."

Broker Numis Securities said 888's results were ahead of its expectations.
As a result, analyst Richard Carter said he "felt comfortable" raising his profits forecast for this year by 1 per cent, and the year after by 2.6 per cent."

Evolution Secs currently have a 'Buy' on this stock with a price target of 192p.

"888 announced today, together with its interim results, that its board of directors has approved the payment of an interim dividend of 2.5 cents per share to holders of 888's ordinary shares.

The board of directors has approved a record date of 10 October 2008 and a payment date of 31 October 2008. The shares will be quoted ex-dividend on 8 October 2008."

MoneyAM
888 Holdings reported another record year with EBITDA up 23% to $55.7m for 2008.

Pretax profit was up 6% to $48.6m (2007: $45.8m) and total operating income up 21% to $262.5m (2007: $216.9m).

888 said its emerging offerings (Bingo, Sportsbook, Live Dealer Casino, Backgammon and B2B) were up 208% to $44.5m (2007: US$14.4m).

Casino revenue up 14% to $135.1m (2007: $118.1m) and Poker revenue down 4% to $77.2m (2007: $80.8m).

EBITDA margin increased slightly to 21.2% (2007: 21%).

The company had cash and equivalents of $98m at period end.

A final dividend of 2.9 cents will be paid, giving a total dividend for the year of 5.4 cents following 2.5 cents interim dividend.

A new B2B deal was announced today with the Racing Post, the pre-eminent horse-racing industry publication plus two other new B2B deals signed, bringing the total for 2009 to four. "

Business Financial Newswire
"Internet casino and branded gaming software firm CryptoLogic is expanding its relationship with 888 Holdings plc.

The move will bring five new games to some of the world's most popular internet gaming sites.

888.com, the flagship English-language casino site, plans to feature eight CryptoLogic games by the end of 2009.

CryptoLogic president and chief executive Brian Hadfield said: "The relationship between CryptoLogic and 888.com continues to grow, driven by our mutual commitment to a superior player experience.

"It's exciting to have one of the biggest names in e-gaming choosing CryptoLogic games.

"CryptoLogic and 888 both recognise that in today's internet gaming market, playability means profitability."

Business Financial Newswire
"Mobile gambling firm Probability has entered a strategic agreement with Dragonfish, the B2B division of 888 Holdings.

Probability and Dragonfish will develop opportunities for mobile gaming and lottery services in territories including China, South and Central America. Revenues will be shared between the companies.

CEO Charles Cohen said, 'Dragonfish has already identified a number of opportunities for us to explore together and we look forward to keeping investors apprised of key developments.' "

Business Financial Newswire
"Online gaming group 888 Holdings said total operating income fell 13% to $118m in the first half.

Pretax profit for the half-year to end-June fell to $14.9m from $26.3m last time.

888 said the economic downturn and foreign currency factors pulled turnover down to $117.8m from $131.5m.

888 announced today, together with its interim results, that its board of directors has approved the payment of an interim dividend of 1.0 cent per share and a special dividend of 2.6 cents per share comprising a total dividend of 3.6 cents per share to holders of 888's ordinary shares.

The board of directors has approved a record date of 11th September 2009 and a payment date of 8th October. The shares will be quoted ex-dividend on 9th September 2009.

Holders of shares may elect to reinvest their dividend*. The latest election date is 14th September 2009."

Business Financial Newswire
"Dragonfish, 888's B2B division, has signed a long-term deal with Harrah's Interactive Entertainment.

Dragonfish will use its Total Gaming Services approach to support the UK launch and roll-out of the World Series of Poker ('WSOP') and Caesars Casino brands.

Dragonfish will deliver its market leading poker and casino software, ePayments, CRM, Customer Support and VIP services, creating a platform to grow the WSOP and Caesars casino brands online. 'This is a ground breaking deal for 888 and demonstrates our ability to provide real value to globally renowned, land-based casinos and their leading brands,' said Gigi Levy, CEO of 888. 'We have the structure in place to realise our B2B division's full potential over the next 18 months and beyond and today's announcement of our partnership with an industry giant is further vindication of this strategy.'

'As we develop and roll out our interactive strategy, we have chosen to work with 888, primarily for their world-class technology, scalability, and a strong commitment to compliance, and responsible gaming,' said Mitch Garber, CEO of HIE. "

strong>Business Financial Newswire
"Online gambling company, 888 Holdings says that operating income for the 3rd Qtr was 10% down on the same period last year but management remains confident of achieving targets for the full year.

Operating income for the three months to 30 Septmeber 2009 was $61m which was down on the same quarter last year and flat compared to the previous quarter.

Business to consumer operating income fell by 15% to $48m but was virtually the same as the previous quarter. Whereas business to business income was 15% higher at $13m and 2% higher on the previious quarter.

The Group says that trading in the 4th Qtr has started well.During the first five weeks daily average revenue as well as new customer recruitment increased by more than 8% compared to the average achieved during Q3.

The financial position remains strong with approximately $105 million cash equivalents (of which approximately $35 million represent liabilities to customers) and with no debt. "

Business Financial Newswire
"888 Holdings target price raised to 145p from 125p at Daniel Stewart, buy maintained"

Business Financial Newswire
"888 Holdings raised to buy from neutral at Goldman Sachs, TP 153p up from 121p"

Business Financial Newswire
"Online gaming firm 888 Holdings reported EBITDA of $45.6m (2008: $55.7m), slightly ahead of market expectations.

Total operating income was $246.7m (2008: $262.6m), the decline driven by the economic downturn and foreign currency effects.

Profit before tax was $34.6m (2008: $48.6m).

B2B revenue was $51.3m (2008: $38.6m), an increase of 33%.

Emerging offering revenue was $25.1m (2008: $13.8m), an increase of 82%.

A final dividend of 3.0 cents will be paid, giving a total dividend for the year of 6.6 cents.

888 said its B2B division has been launched in its own right as 'Dragonfish'.

The acquisition of Wink Bingo completed on 31st December 2009 and it already contributing to revenue and profit.

Real money registered customer accounts totalled 7.1m (2008: 5.8m), an increase of 22%.

Dragonfish signed a first-ever e-Payments processing agreement with Linden Lab, extending its offering beyond online gaming

Dragonfish also signed a major deal with bwin Italia and deals have been signed to open up new territories, including: South Africa (Phumelela), Balkans (Loper Gate), China, South and Central America (Probability). "

Business Financial Newswire
Online gaming firm 888's total operating income rose by 21% in the first quarter to $69m and a 13% increase on a pro forma basis.

888 had 7.6 million casino, poker and sport real money registered customer accounts at the end of March - an increase of 24% since March 2009.

But is says Q2 trading to date has been disappointing in casino, poker and bingo, in part due to historical seasonal trading patterns.

During the first 25 days of the quarter daily average revenue was approximately 13% below the Q1 average.

Chief executive Gigi Levy said: "While Q1 saw improvement on a year-on-year basis, B2C trading remains challenging across our product range, partly influenced by the seasonal pattern.

"Emerging Offering continues to out-perform the core products, and Dragonfish continues to win new deals, notably those in the newly regulated Italian market with bwin Italia and Gioco Digitale.

"However, revenue from new deals is yet to gain significant volume.

"We believe that the right steps are being taken to counter the current challenges we face, and the board remains confident in 888's strategy."

With a few of the gaming stocks falling away, I suspect consolidation in the sector is not too far away. The next year or so should give traders some interesting opportunities.

Business Financial Newswire
"Online gaming firm 888 has signed astrategic agreement with online gaming B2B provider Microgaming to launch a joint poker network for the French market.

888 and Microgaming will establish a joint venture which will develop, offer and support the shared poker product for Microgaming and 888's B2B's Dragonfish licensees in France, as well as to 888's own B2C poker customers.

Players will benefit from a shared pool of player liquidity whilst still enjoying the unique 888 experience."

888 signs Italian joint venture with Endemol Italy

888 announces a joint venture with Endemol Italy, the largest independent TV production company in Italy, to co-invest in the Italian market.

The agreement will see the launch of a comprehensive gaming offering, operating on 888.it, which will benefit from exclusive utilisation of Endemol's brands in the Italian market, including Big Brother and Deal Or No Deal.

The joint venture, which represents 888's first major consumer launch in the Italian market, will operate under 888's licence in Italy. It is planned to launch once the Italian gaming authority provides final regulations for the provision of casino games, expected in the second half of 2010."

Business Financial Newswire
"Dragonfish - the B2B division of 888 Holdings - is launching a suite of Quickplay instant format games built specifically for the upcoming FIFA World Cup.

The games will be available to clients on the Dragonfish bingo network and standalone networks.

The games, consisting of Hi Lo, Slots and Keno, feature some of the most recognisable players who will soon be representing their countries in South Africa.

The games can be integrated seamlessly into the bingo environment via Dragonfish's bingo integration platform.

The release follows the launch last year of a number of Quickplay instant games for bingo clients, including new video slots, scratch cards and major branded games such as X-Factor, Spiderman and Fantastic Four. "

SELL 888...

Profit warning from 888 as poker earnings slump
Business Financial Newswire
Online gaming firm 888 Holdings said this morning that it has continued to experience a difficult trading environment across its products, with the exception of bingo and its recent acquisition Wink Bingo.

Trading is being impacted particularly by the continued weakness of online poker, which management believes is affecting the online poker industry generally. 888's poker daily average ring games' players declined approximately 18% during the period from January to May and management believes that this decline reflects industry-wide trends.

Revenue has also been impacted by the weakness of the Euro and Sterling against the US Dollar (the company's reporting currency). In particular, management estimate that May revenue would have been approximately $1.9m higher had exchange rates remained at their January average levels. For the year to date, management estimate that 888 has experienced a total revenue loss of approximately $5m as a result of foreign exchange movements.

Following 888's application on 21st May 2010 to obtain a licence to operate in the newly regulated French market, it is expected that trading could be further adversely impacted by the mandatory transition of business onto the regulated platform. This transition will require significant marketing investment, which in turn will have a short to medium term financial impact on the business.

After assessing the effect of the above and the expectation that online gaming trading during the period of the FIFA World Cup will be difficult, 888 has revised its outlook for the remainder of the year and now expects profit to be significantly lower than previous market expectations.

Although it is trading in difficult conditions, the Group continues to trade profitably, is cash flow positive and its financial position remains strong.

A number of steps, including cost cutting, have already been implemented and the Board remains confident about the future strategy and prospects of the Group. The underlying fundamental strengths of a regulated, legitimate and safe online gaming entertainment environment remain, and with this comes opportunity. 888 remains committed to further acquisitions as part of the ongoing industry consolidation