888 Holdings Announce Massive Drop in Profits
888 Bingo to Close?
In an analysis of why 888 Holdings profits have dropped it looks like online Bingo is on shaky ground
There are worries at 888 Holdings over their Bingo acquisition as they report a drop in profits of over 50%. The company includes several different modes of online gambling including their online casino, poker as well as the afflicted Bingo. Last year there was a massive boom in the world of online bingo as this game was touted as the next big thing by many observers and executives in the world of online gambling.
The good news for 888 Holdings is that most analysts doubt that there is any real slump in the online Bingo market. The fact is that many of 888 Holdings competitors in the online Bingo market arent reporting a similar drop in profits for the same period. They themselves have announced that there appears to be some signs of hope ahead after a massive increase back up of 7% in profits over the beginning of 2011. The signs point to some consolidation in the markets as talk continues over the proposed acquisition of 888 Holdings by the high street bookies giant Ladbrokes.
These talks have been on going for some time and have been quite problematic, mainly due to complications over the acquisition of Wink Bingo by 888 Holdings. The probable reason for the massive drop in profits announced by the company is this massive acquisition which has already cost the company 11 million and is said to be worth a massive 59 million in total.
Its not just online Bingo that has taken a nose dive in the profits department but the massive boom in the world of online poker is well and truly dead. Its not just 888 Holdings who have announced that their poker profits are down, other well known online gaming companies have announced the same drop in revenue from their online poker brands. Unlike other online gaming brands like casino and bingo, poker companies are only making money from rake and fees for organising tournaments. This has meant that the profits have always been much lower for poker than casino games. Now that less people are playing there is less money to be made, sparking rumours that soon there will be a great deal of mergers between poker companies. The mergers could well prove to be good news for the bingo providers with less completion for online gamers in general meaning more people will start playing online bingo.
