CEO OF 888 Holdings Gigi Levy Resigns

888 Holdings’ chief executive Gigi Levy notified the board that he’ll be resigning soon. This in the middle of the internet gambling group’s protracted takeover by Ladbrokes. Levy said he’d like to “pursue other business ventures” after five years with 888 Holdings. Levy will stay on as member of the board.

888 Holdings said in a recent statement to the stock exchange that Levy will assist in finding a suitable CEO to fill his position. Until the appointment is concluded, the board approached Brian Mattingley senior independent director to “establish a close-knit relationship with management on all fronts.”

In March 888 was compelled to extend its payments for Wink Bingo after the strong performance, since it’s not in a position to repay the full earn-out payment of £48.7m payable in May. On the 18^th March the internet casino said 888 will effect a change in control before it has completed its payment for Wink. Such as the long anticipated takeover by Ladbrokes, in effect Daub could coerce 888 to sell its bingo business to facilitate repayment, with the same clause coming into play if Levy is not on the board of 888 or if the internet casino fails to repay its debts.

A spokesman for 888 told Cassaon-casino recently that Levy’s departure “would not impact upon Wink’s payout since Levy still remains a board member. He went on and stated that Levy stays in his position “to increase 888’s profit margin before trying out other business opportunities”. No one knows exactly what Levy plans on doing next, however might be working with various other internet casinos.

The 888 board said in a statement recently it asked its nominations committee to seek a suitable new CEO, whilst an executive search firm will aid too. 888’s Chairman, Richard Kilsby had the following to say: “The first half of 2010 was a very difficult year for this internet casino, since then we’ve had three successive quarters of growth. Subsequent positive trends in Q1 2011, which continued into Q2, Gigi has decided to resign from his position as CEO, leaving the internet casino well poised to continue its expansion. “The board thanks Gigi for his contribution during his stay with 888 as its CEO. Since UIGEA’s promulgation, Gigi has led from the front and nearly succeeded in making 888 on of the world’s premier internet casinos.”

Notwithstanding the 888 board said the internet casino’s figures are performing “well”, Gigi in his last statement as CEO on 31 March disclosed a meagre set of yearly results for the internet casino in 2010 with revenue before tax falling 56%. 

“In 2010 we (888.com) have surpassed Microgaming as well as the International network, our next target is Entraction,” he said. “No one expected us to become one of the top five poker brands,” he concluded that overtaking Entraction leaves only iPoker, PartyPoker, Ongame and Cereus ahead of Pacific in the network grouping.

888’s proceeds for 2010 increased by $15.4m from $246.7m in 2009 to $262.1m, with a 21.2% decline in B2B profits explained by the movement of Wink Bingo to the B2C division, a change which saw bingo profits increase for the year 368.2% to $50.1m.

According to 888’s CFO Aviad Kobrine, profits before tax were down 56% from $34.6m to $15.1m as a result of its sub-standard poker performance in the first half of 2010 and expensive advertising costs that increased by 35% in a year from $67.3m to $91.5m, 38% of revenues. Operating costs, market studies, development costs and administrative expenses shot up by 15% from $201m in 2009 to $233. EBITDA dropped 59% from its former value of $45.6m to $28.6m.