Online gaming company 888 Holdings says marketing initiatives have paid off after announcing a near doubling of active users for its casino and poker offerings.
In the three months to the end of March the number of active users reached 566,000, an 87% increase on the same point of 2011.
Total group revenues were $94m, an increase of 25% year-on-year and a 4% increase compared to the final three months of 2011.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company provides both its own business to consumer (B2C) channels and provides solutions for other companies (B2B).
B2C is by far the bigger operation, with revenues in the first quarter at $83m, up 29% on the same period of 2011. B2B is not moving at such a quick pace, with revenues of $11m, an increase of just 3% year-on-year - although this reflects the fact 888 has taken over certain B2B brands.
Trading in the current quarter is 1% ahead of the first three months but the firm expects to "see a return to the historic seasonal pattern". In other words, a possible slow down.
The Chief Executive, Brian Mattingley, said of the update: "Our focused strategy has led to another excellent quarter, with ongoing strength in Poker driving March to the highest ever monthly revenues in the history of 888.
"Poker has continued its robust performance in the early stages of Q2, with our other product areas seeing an expected return to seasonal patterns."
The shares were down 1.6% by 12.04 but the stock has nearly doubled in the last 12 months as liberalisation in European markets, and possibly in the US, has made online gaming stocks very popular indeed.
BS
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
