Another online gambling site plans to go public |
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Fri, 02 Sep 2005 19:05
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LONDON: Online gambling site operator 888 Holdings is planning flotation on the London Stock Exchange to capitalise on the increasing popularity of online gaming. The company expects a valuation of 700 million pounds and has identified HSBC to handle the listing procedure.
Gibraltar-headquartered 888 Holdings operates the world's largest online casino and is the fourth largest poker site. It revealed that its gaming revenues have gone up from $146 million in 2002 to $178 million in 2004, while operating profits for the six months ending June 30 were at $25.4m. The company operates 888.com gaming web site and a highly popular Pacific Poker gaming site.
The listing would bring to the company's founders substantial income. Israel-based Avi and Aharon Shaked, who own 70 per cent of the company through a family trust, were actually planning to offload around a quarter of their holding. The other stakeholder is the Ben-Yitzak family, which has 20 per cent holding.
Chief executive John Anderson said the funds generated from the listing would be used to buy other online gambling operations. Recently, another online gambling site, PartyGaming, went public with
a 5-billion- pound flotation, and is expected to be on the FTSE 100 next week. There is some question of PartyGaming sustaining its financial stand as nearly 90 per cent of its revenues come from the U.S. where Internet-based gambling is argued as not legal. 888 Holdings says 50 per cent of its revenues is generated from outside the U.S.
Anderson says against a 90 per cent customerbase in the U.S. about five years ago, the company has now just over 50 per cent in that country and it has expanded to France, Spain and Germany.
The company said it has not decided on a price range, but it will begin a roadshow for investors next week.
Some 2,500 websites offer poker, sports betting, online casino games and bingo.
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