Online gaming giant, 888, has announced that it has scrapped its planned dividend payment to preserve cash. The decision comes after profits fell by more than half for the first half of the year. The company has suggested that the poor results were a result of the World Cup and debt concerns in Europe.

Pre-tax profits fell by 56 percent to $4.29m (£2.77m) as the demand for poker tumbled with during the South Africa World Cup. The company spent 35 percent more on marketing and the company saw operating income rise by 10 percent to $130.2m.

The company Chief Executive, Gigi Levy, commented: “Our business experienced a difficult first half against the backdrop of a challenging economic environment.”

Mr Levy added that the board had made the decision not to pay an interim dividend to shareholders and to instead look to invest the money in future growth through “acquisitions”.

Online poker revenues fell from $26.2m to $19.6m. Casino income partly offset the losses with a 6 percent rise to $59.3m. Bingo revenues made impressive gains to the group’s performance with a jump from $5.1m to $23.5m. – the division includes a number of the top online bingo sites such as Foxy Bingo and Wink Bingo using the companies software platforms.

City investors are somewhat concerned with the groups performance. Nick Batram of KBC Peel Hunt, suggested that impressive deals were failing to make an impact on the bottom line.

Batram added: “Our view remains that the inherent value within 888 is greater than the current share price. The problem is realising that value, which is reliant either on management rebuilding credibility or a transforming deal.”

Simon Davies at Collins Stewart added that the company that the company had a ‘hold’ on the stock “given the potential for bid speculation”.

Mr Levy remains confident that 888 will remain on target meet full year earnings.