888 Suffer From Seasonal Slump
28th April, 2010
888 Holdings Plc have had a ‘disappointing’ second quarter with figures falling the most in a year in London trading.
The company has fallen by more than 11% which is the most since April 3rd 2009. Second quarter trading has ‘been disappointing in casino, poker and bingo’ the company which is based in Gibraltar said in a statement today.
As a result of this the company has to cut some expenses meaning a 20% cut in payroll costs cutting 20% of their work force of 1000 employees. In addition to this the company’s top ten managers will be asked to take a 10% reduction in pay.
Competitors such as PartyGaming Plc and Playtech Ltd. “have been exhibiting stronger casino revenue growth, and the weak start to Q2 strengthens the case that the group is suffering competitive losses,” wrote Alistair Macdonald and Geetanjali Sharma.
The seasonal slump, which is typical of the industry, as the weather improves during spring, was ‘slightly more’ than last year, Gigi Levy said. Average daily sales were 13% lower than in the first quarter in the first 25 days of the second quarter.
By Tom
