Deputy chairman unveiled as new CEO at 888

Online gambling outfit 888came up trumps in 2011 on the back of a sharp increase in new accounts.

The company has reported a near doubling of income for the full year, while also naming Brian Mattingley as its new Chief Executive.

Revenues grew 26% on 2010 to $331.1m while earnings before interest, tax depreciation and amortisation (EBITDA) jumped 94% to $55.6m.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

EBITDA margin, which shows how much the company is actually making from revenues, increased to 17% from 11%.

The company offers casino, poker and bingo games for customers and says it is primed to take advantage of changes to both European and US online gaming laws.

The US market in particular could be a big revenue stream although 888 points out politicians have yet to agree whether to regulate at the state or federal level.

What is clear is that 888 has managed to grow its customer base significantly and now has 10.6m "real money" accounts, a 22% gain on the figure at the end of 2010.

The appointment of Mattingley, who has been deputy Chairman of 888 since 2006 fills the void created by the departure of Gigi Levy in April last year.

888 says so far 2012 has started brightly with average daily revenue "2% above the strong Q4 [fourth quarter] 2011".

Commenting on the results Mattingly said: "2011 has been a phenomenal year for us, refocusing on our core product offer and the success of our Poker 6 platform has delivered exceptional growth across all key metrics."

He added: "We are more than ready to take advantage of liberalisation in the industry. We have a unique position in the US allowing the launch of a real money offering immediately as either federal or state based regulation is finalised."

The stock had gained 5% by 11:59 and is up 13% so far this year.

BS