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The present economical turbulence in the gambling industry seems to hit up each and every nooks and crannies of the industry. One such consequence of this crisis can be seen in the operating income downfall of one of the leading online gaming companies, the 888 Holdings plc.
Recently, it has been reported that the total income of the poker unit of 888 Holdings dropped by 36% in the second quarter of the year. The total operating income during these months of the previous year was $13 million, which went right down to $8 million in 2010. This has drastically affected the financial condition of the company.
888 also mentioned that it has been quite challenging for the company to maintain a proper trading throughout the year, as there are several factors responsible for this situation. For example, the worldwide online poker weakness is of course one of the major issues that has significantly impacted the whole trading process.
The operating income is not the only terrain where 888 had to face this downfall. However, other important areas are also equally affected. The number of online poker players also got minified by 15% as compared to the previous year. This is definitely a huge loss for the company and can significantly affect its future decisions.
This drop of income has adversely affected the company’s position in the market, as a result of which it has become one of the major takeover targets. The company has also reported that many of its rival companies have recently contacted them in order to give merging proposals.
Gigi Levy, the Chief Executive, said in his statement that this financial instability has put them on a state, where everyone is looking for consolidation with them.
In such a situation, what we can expect is a sensible decision from a company like 888.
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