888 to cut costs after poor trading
ONLINE gaming group 888 said it will have to take cost-cutting measures after disappointing second quarter trading in its casino, poker and bingo operations.
The internet group said yesterday that second quarter daily average revenue was down by 13 per cent compared to the previous quarter, which was partly due to historical seasonal trading patterns.
Quarterly business-to-customer revenue per active casino and poker player was also down and fell by 15 per cent to $204 (£134).
888 management said it would have to take some cost cutting measures, including cutting manager pay by 10 per cent and shaving 20 per cent off the group’s payroll.
Gigi Levy, chief executive officer, said: “While the first quarter saw improvement on a year-on-year basis, business-to-customer trading remains challenging across our product range.
“We believe that the right steps are being taken to counter the current challenges we face, and the board remains confident in 888’s strategy.”
Quarterly operating income, however, climbed by 21 per cent to $69m from $57m in 2009.