by Anton Johan
888 Holdings, the giant Gibraltar based online gambling group, is
seeking acquisitions this year.
The company's Chief Executive Officer, Gigi Levy, said that the group is
currently in the advanced stages of acquiring a small business and in a "very
early" position to enter a major acquisition deal.
Levy spoke about major consolidations that are expected to take place this
year.
"I do believe 2010 is the year we will see one of these," he said. "Once
somebody goes ahead, it will happen very quickly."
Levy said that while a small acquisition could cost around $10 million, a
bigger deal, such as that allegedly being thrashed out between Bwin and Party
Gaming, could cost up to $50 million.
However, the CEO is positive that this is money well spent, considering that
the companies become well placed as US gambling laws relax over time.
888 Holding posted positive financial statistics this week, with fourth
quarter total operating income standing at $68 million (£43.5 m) - compared
with $60 million year on year previously.
During the first five weeks of the year, the group average daily total
operating income was 7% higher than the fourth quarter.
888 Holdings also reported a new customer recruitment increase of an
impressive 52% across the group.
According to the group, it had 7.1 million real money customers who held
accounts through its casino, poker and sports betting brands.
With no debt and plenty of cash, Levy believes that 888 Holdings can look
forward to a positive future. "This leaves the group in a sound position to
exploit further merger and acquisition opportunities when they become
available," he said.
