Online gaming firm 888 said it had embarked on a cost-cutting exercise across the group following disappointing trading in the second quarter.

The company, which runs online casino, bingo and poker websites, said daily average revenue in the first 25 days of the second quarter was 13 percent below the first-quarter average, partly reflecting seasonal trading patterns.

In the first quarter, total operating income in the company's business-to-consumer (B2C) division increased by 30 percent on the previous year to $59 million (38.7 million pounds).

"While Q1 saw improvement on a year-on-year basis, B2C trading remains challenging across our product range," Chief Executive Gigi Levy said in a statement on Wednesday.

888 said its emerging offering, which includes bingo, sports betting and backgammon, had continued to outperform its core products while Dragonfish, its business-to-business arm, had won new deals. However, it said revenue from those agreements had yet to gain significant volume.

888 said it was in a strong financial position with net cash of $93 million, leaving it in a sound position to exploit M&A opportunities. Analysts expect a wave of consolidation across the online gaming industry this year.

The company said it remained positive about its prospects, adding that appropriate steps, including cost cutting, were being taken.

"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," Levy said.

Shares in 888 were down 2 percent to 91.8 pence at 0706 GMT, valuing the business at around 312 million pounds.

Source: Reuters

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