888 Hldgs Regulatory News (888)

7th February 2012                                                                         

888 Holdings Public Limited Company

("888" or "the Group")

Interim Management Statement
Q4 2011 Key Performance Indicators and Trading Update*

888, one of the world's most popular online gaming entertainment and solutions providers, is pleased to provide the following trading update for the fourth quarter of 2011.

Highlights

·      Group revenue US$91 million (Q4 2010: US$71 million), an increase of 28% year-on-year and 6% increase on Q3 2011, led by B2C Poker and Casino, beating the previous record set in that quarter

·      Revenue B2C US$79 million (Q4 2010: US$60 million), an increase of 32% year-on-year and 7% increase compared to Q3 2011, continuing the strong momentum in Poker and Casino

·      Revenue B2C Casino US$42 million (Q4 2010: US$31 million), an increase of 34% year-on-year and 11% increase compared to Q3 2011 driven by strong customer recruitment and retention

·      Revenue B2C Poker US$19 million (Q4 2010: US$11 million), an increase of 76% year-on-year and 2% increase compared to Q3 2011, driven by the continuing success of the Poker 6 platform and effective customer retention activities

·      Revenue B2C Emerging Offering US$6 million (Q4 2010: US$4 million), an increase of 36% year-on-year and 9% increase compared to Q3 2011

·      Group revenue in full year 2011 reached US$331 million (2010: US$262 million), the highest on record, representing an increase of 26%

·      Number of active customers B2C Casino and Poker at 478,000 (Q4 2010: 283,000), a 69% increase

·      As at 31 December 2011, 888 had 10.6 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 22% from 31 December  2010

·      First strand in US strategy with Caesars Interactive Entertainment B2B deal expanded into the US market

·      New Casino product being released

·      Strong current trading continues into 2012 first quarter

* All percentages in this release are calculated without rounding

Key Performance Indicators

Fourth Quarter 2011

Group

·      Revenue US$91 million (Q4 2010: US$71million), an increase of 28%

·      As at 31 December 2011, 888 had 10.6 million Casino, Poker and Sport real money registered customer accounts, representing an increase of 22% from 31 December 2010

B2C

·      Revenue B2C at US$79 million (Q4 2010: US$60 million), an increase of 32%

·      Revenue B2C Casino at US$42 million (Q4 2010: US$31 million), an increase of 34%

·      Revenue B2C Poker at US$19 million (Q4 2010: US$11 million), an increase of 76%

·      Revenue B2C Bingo at US$13 million (Q4 2010: US$14 million), a decrease of 7%, a result of a saturated and highly competitive UK online bingo market

·      Revenue B2C Emerging Offering at US$6 million (Q4 2010: US$4 million), an increase of 36%

·      Number of active customers B2C Casino and Poker at 478,000, an increase of 69% compared to Q4 2010

·      Number of active customers B2C Casino at 224,000, an increase of 81% compared to Q4 2010

·      Number of active customers B2C Poker at 318,000, an increase of 58% compared to Q4 2010

·      Quarterly revenue B2C per active Casino and Poker customer was US$126, a 14% decrease compared to Q4 2010

·      Quarterly revenue B2C per active Casino customer was US$186, a 26% decrease compared to Q4 2010, a result of significant expansion in new customer recruitment coupled with a significant, but slower, revenue increase

·      Quarterly revenue B2C per active Poker customer was US$58 an 11% increase compared to Q4 2010

Dragonfish

·      Revenue  B2B at US$12 million (Q4 2010: US$11 million), an increase of 6%

Full year ended 31 December 2011

·      Group Revenue up 26% to US$331 million (2010: US$262 million)

B2C

·      Revenue B2C up 28% to US$284 million (2010: US$222 million)

·      Revenue B2C Casino up 27% to US$148 million (2010: US$117 million)

·      Revenue B2C Poker up 58% to US$61 million (2010: US$38 million)

·      Revenue B2C Bingo up 8% to US$54 million (2010: US$50 million)

·      Revenue B2C Emerging Offering up 33% to US$22 million (2010: US$16 million)

Dragonfish

·       Revenue B2B up 16% to US$47 million (2010: US$40 million)

Current Trading

Trading in 2012 continues at record levels. Average daily revenue during the first 35 days of Q1 2012 was 25% higher than the average during January 2011 and 2% higher than the average during the record Q4 2011. Daily average new customer recruitment increased by more than 25% compared to Q4 2011 and daily average deposits continued at the high levels of Q4 2011.

As at 30^th January 2011 the Group had US$83 million of cash and cash equivalents, and US$45 million liabilities to customers.

Commenting on today's announcement Brian Mattingley, Deputy Chairman, said:

"We are delighted with 888's strong performance over the last year and in particular Q4. Q4 revenue is the highest on record, and represents five consecutive quarters of revenue growth. Strong trading was led by an excellent performance in our B2C Casino & Poker, and is the successful result of an increased strategic focus on our core competencies and the stand out success of Poker 6.

Current trading in January continues to be strong and the forthcoming launch of our exciting new Casino product provides yet another compelling offer for our loyal customer base. We believe our focused strategy, aligned with the selective B2B approach, will continue to drive growth in 2012."

Analyst and Investor Conference Call

There will be an analyst and investor conference call at 10:30am (GMT) today.

-ends-

Contacts and enquiries

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement reflect 888's view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, 888 undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.

Appendix

* Rounded