888 Holdings Plc, the company behind Pacific Poker and 888.com, gave investors a boost yesterday when it reported a 34 percent increase in annual pre-tax profits, despite having pulled out of the US market in October due to the passage of the Unlawful Internet Gambling Enforcement Act.
Pre-tax profit for 2006 was $90.5 million compared with $67.4 million for 2005; an impressive achievement given 888 had to cope with a 55 percent drop in revenue following their withdrawal from the US market.
In order to deal with the blow of pulling out of the US, 888 looked towards diversification and acquisitions; some of their successes include a partnership with Rileys snooker club, the acquisition of a bingo operation, the introduction of new casino games and adding blackjack software to the poker room.
888 Holdings was recently the subject of speculation regarding a possible takeover by Ladbrokes but talks fell through last month, allegedly because Ladbrokes was concerned about possibly being liable for 888 Holdings’ previous activities in the US.