by Renee Israel
It was a black week for 888 Holdings Plc after the group issued profit warnings.
As a result, 888 lost more than a fifth of its share value and it remains to be seen what this week has in store for the giant online gambling group.
The London trading 888 also said that it expects to be hard hit by the World Cup as its regular online poker and casino customers abandon their traditional online entertainment in order to watch soccer action this month.
"Online gaming trading during the period of the FIFA World Cup will be difficult," warned the Chief Executive Officer of 888, Gigi Levy.
Other figures released by 888 showed that the average number of players dropped a significant 18% between January and May this year, with no improvement since the beginning of this financial year.
In terms of profits, Levy warned that they would be "significantly lower" than market expectations that were set at GBP 31.2 million.
Currency fluctuations have already caused 888 to lose more than $5 million in revenue in 2010. Nearly $2 million of this figure was in May alone.
888 has taken a number of steps to solve some of its immediate problems, including cost cutting measures.
However, the group will need to work very hard in order to bring itself near to its former glory.
"Trading is clearly continuing to deteriorate at 888 and, unlike a month ago, the scale of potential cost cutting is not enough to compensate," said one market analyst. "Even though the share price has fallen, the potential for 888 to be acquired has diminished in our view, largely because the uncertainty over trading."
