Gaming firm down in debut trading

Revenues are continuing to grow, 888 says

Online gaming firm 888 has seen its shares fall by 5 pence in London trading, after launching at 175p, valuing it at around £590m ($1bn).

Institutional dealers started trade on Thursday, with full trading on Monday.

The firm is the latest to come to market, although confidence in the sector was recently hit when rival Partygaming warned growth may slow.

888 is 90% controlled by two Israeli families and run by Gibraltar-based Cassava, which runs two other sites.

They are online casinos Pacific Poker and Reef Club.

Shares in 888 were down to 162.7 pence in mid-afternoon London trading.

John Anderson, chief executive of 888, said: "We have a clear strategy for creating sustainable shareholder value by becoming the market leader in the online gaming industry and continuing to provide our members with a comprehensive range of gaming activities in a secure and trusted environment."

'Well-run'

In early September the market cooled towards the sector after Partygaming warned of slow growth, and its shares fell by 30%.

"We don't know the track record on a historical basis of these online gambling companies, " David Buik, of Cantor Index, told the BBC on Thursday.

"We know what we will make this year and next year, but we don't know what they will be doing in five years' time."

He said it was "too early" to say if the online gambling bubble had burst, but remarked that 888 was a "well-run company".

"They haven't been too ambitious on the [flotation] price, which is a good sign."

In early September, 888 said that net gaming revenue from its casino business was up 14.2% in the first half of 2005 compared with a year ago.

Net gaming revenue from its poker interests jumped by 226%, although the firm said it did not expect growth to continue at this rate.