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Online gambling group, 888.com, is looking to capture the lucrative South Africa market through its Dragonfish division. A joint venture with South Africa's Tsogo Sun Gaming Group and will help the business expand into online gaming for the first time.
Charlie Menegatos senior trader at Accendo Markets said:
We have noted the consistent progress at 888's B2B division Dragonfish in sealing affiliate deals and generally expanding the reach for the company as a whole. We also note the comments by Gabi Campos, Managing Director of Dragonfish; "This partnership is the first of many targeted at regulated markets, where Dragonfish's partners operate under local licenses and enjoy the benefits of such regulatory arrangement". In the half year report on 27 August, 888 reported 42% year-on-year revenue growth for Dragonfish, and provided insight into its B2C and B2B strategy going forward.
We believe 888 is well placed to capitalise on the global growth in online gaming, and at current levels, we believe the shares are cheap enough to warrant a re-rating in the near future. Buy.
The company's shares are currently 0.9p higher at 94.25p.
Earlier this month, 888 announced its software would be used by US casino giant Harrah's Entertainment in its expansion into the UK.
Jagajeet Chiba, Gambling911.com
