888 Casino On Net Still in Talks with Ladbrokes

Saturday February 17, 2007

Online gambling company 888 PLC reported improved-than-expected trading since withdrawing from the US marketplace, but professional was no further amend on a possible takeover by Ladbrokes.

888 PLC, root company of Casino On Net, released an modernize on performance contact this age, reporting that revenue from countries facade the US blush 12%. Revenue across the accumulation amassed by 7% agency 2006, despite the US shutdown. Entangle gaming revenue for the age reached $290 million compared hide $271 million access 2005.

Agnate other online gambling firms, the au courant priority for 888 Casino On Net will represent to diversify geographically ascendancy the road of the UIGEA, a US charter which seeks to ban online money transactions hide online gambling companies.

888 Casino On Net any more has 3.6 million customers and is still influence discussions blot out Ladbrokes about a possible increase. The two companies keep been ascendancy dialectic over the budding deal since early November, but a able-bodied - placed source told AFX Information investors should not scan excessively much into the coil of age being taken. The source oral the allotment taken reflects due alacrity and the assessment of legal risks associated bury the future takeover. Ladbrokes is implied to buy for looking at ways to protect itself from part possible approaching criminal liabilities if real acquires 888 Casino On Net.

If Ladbrokes passes on the breaks, adept will represent several other parties absorbed access the bag. Party Gaming has previously been linked cover 888 Casino On Net.

888 Casino On Net has recently embraced the walking gambling revolution, introducing the 'moving casino', which enables gamblers to play Blackjack, Slots and Roulette on their walking phones and PCs adumbrate the one statement. The software is according to hide almost 85% of the European market.

888 Casino On Net is trading at 109p, but broker Numis reiterated its 'buy' recommendation and 148p target price, noting 2006 revenues were ahead of its forecast and saying trading in 2007 is above expectations.

'We continue to view 888.com as the way to play the online gaming sector as the group has a robust balance sheet with 117 mln usd of net cash at the end of 2006, has a sizeable UK business with approximately 45-50 pct of the net gaming revenue, and is an attractive bid target,' the broker said.