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888.com is set to implement drastic cost cutting measures as a way of getting back to profitability and stem further losses.
Pre-tax profit fell 43 percent to US$8.4 million during the first part of 2010.
CEO, Gigi Levy, blames a slump in the online poker market (even though growth across the industry is up close to 1 percent) and World Cup results (which actually netted competitors huge profits). Bingo seems to be faring well for the company, overtaking poker.
Unlike many of its competitors, 888.com continues to rely heavily on annoying spam solicitations as part of the firm’s marketing campaign. Smart and successful marketing venues stay clear of such generic spam mails and shy away from sponsorship deals.
888.com has not yet determined where cost cutting measures will take place.
Levy said any cost-cutting program would reduce overheads by up to US$6m.
During today’s first half results announcement Levy added: “We look at consolidation as one of the possible routes to realising our full value and feel that longer term this is the direction the industry will take. We have always stated that we will look into all relevant deals and expect the recent merger news to accelerate such discussions in the industry.”
Aaron Goldstein, Gambling911.com
