| 888 Holdings Income up on Poker and Bingo - Talks with Ladbrokes Continue |
| Written by Mark Bennett |
| Monday, 07 February 2011 11:09 |
|
888 Holdings the UK listed gambling giant said talks with Ladbrokes Plc are continuing and the final quarter of the financial year showed a 5 percent gain over the same period a year earlier. The Mail on Sunday suggested yesterday that Ladbrokes, the UK bookmaker, may walk away from talks after they rejected a bid that was too low. 888 Holdings, based in Gibraltar reported an operating income of $71.6 million. Poker which had a showed a slump earlier in the year saw a rebound following a successful advertising campaign. Bingo income more than quadrupled to $14.1 million, as Wink Bingo, acquired in Dec. 2009, exceeded forecasts, the company said. 888 said it expects earnings before interest, tax, depreciation and amortization for the full year to meet analysts’ estimates. Income in the bingo operations rose significantly as the company added six new instant games and Wink Bingo beat forecasts meaning that “earn out” payments, or an arrangement where the sellers of a business receive extra future payment, will be at the “upper end,” the company said. 888 are in “advanced discussions” with Wink Bingo vendors over the timing and structure of the payments. The payments could be as much as 48 million pounds ($77.6 million), which compares with 888’s gross cash position of $67 million, according to Nick Batram, an analyst with Peel Hunt. In relation to the discussion with Ladbrokes, “There’s still interest on both sides,” Chief Executive Officer Gigi Levy added “Our current numbers only make us more appealing.”
|






