Nambling Notes | June 25, 2008

UP Numis Securities, a brokerage in London, has issued a "buy" note on 888 Holdings, after the Gibraltar company announced a strategic partnership deal with Sportech yesterday.

The five-year deal sees 888 supply software, back-end and marketing services to Sportech.

"We are increasing our 2009 PBT (profits before taxes) forecast by $7.5m or 10% to $85.9m," Richard Carter and Wyn Ellis, analysts with Numis, wrote in a research note Tuesday.

"However," the note continued, "to be conservative we are keeping our 2009 PBT forecast of $63.8m unchanged given the risk over the timing of migrating players onto the 888.com/Sportech platform."

The analysts have given 888 shares, currently trading at 149 pence, a 212 pence target price.

Gigi Levy, chief executive of 888, told the Financial Times Wednesday that the company has between 10 and 15 business-to-business deals in the pipeline.

Mr. Levy said moreover that he expected earnings before interest, tax, depreciation and amortization, deriving from b-to-b deals, to reach between 33 percent and 50 percent of total Ebitda.

Financial Times also reports there is talk that 888 might launch a bid for Fluxx, a Germany-based online gambling operator that will soon trade as Jaxx.

Fluxx did not immediately respond to e-mails from Interactive Gaming News seeking comment.

THROWN OUT A French court has dismissed claims of commercial free riding and trademark infringement leveled against three online gambling operators by Paris Saint-Germain, a French football club.

According to the European Gaming and Betting Association, the Paris Tribunal of First Instance disagreed with the club's claim that, by promoting bets online with the club's name, Austria's Bwin, Sweden's Unibet and the United Kingdom's Sportingbet infringed the club's trademark.

"It is impossible to announce events or advertise bets involving the Paris Saint Germain Football Club by paraphrasing and without mentioning the name of the club," according to court documents, sections of which were translated by the association, a trade group representing commercial online gambling interests in Continental Europe.

With regard to the free-riding charge, the judge, who the association did not name, decreed the bookmakers' were not in commercial competition with the club, as "they organise bets on sports events that are likely to attract consumers betting on football as well as other sports."

Free riding, in economic terms, means benefiting from a good or service without paying for it.

The ruling was handed down on June 17.

Further analysis on this story to come. To read about a similar, recent case in France involving Expekt, Unibet and the French Tennis Federation, click here.