Nambling Notes | July 25, 2008

GROWING According to the China Internet Network Information Center in Beijing, China last month became the world's largest Internet market with about 253 million users.

The estimate, based on a national survey, shows the number of users rose by more than 50 percent, or 90 million, during the past year, suggesting China could soon boast more than 300 million Internet adopters.

The information center, which operates under the state-controlled Chinese Academy of Science, said its study only represents about 19 percent of the country's population.

NEW HEMISPHERE Inspired Gaming Group, the server-based gaming specialist, has reached a partnership agreement with Mexico's Hipodromo de Agua Caliente to launch a virtual racing service across Caliente properties in South America.

Under the agreement, Caliente will broadcast Inspired's virtual racing suite, comprising horse racing, greyhound racing, football, speedway and motor racing, from August 2008.

The first phase of the rollout sees Inspired's broadcast interwoven between Caliente's own broadcasts, though the second phase will see a channel dedicated to Inspired's products launched.

Financial details were not disclosed.

FORWARD LOOKING Ahead of 888 Holdings' second-quarter results, Numis Securities is projecting total quarterly revenue of $66.5 million, up 33 percent against the previous-year period and 1 percent versus the first quarter.

"Recently both 32Red and Playtech have delivered upbeat updates and our channel checks with private operators suggest July has seen a big bounce back with revenues up c.5-10% on June," the London brokerage said in a note Friday.

Growth is expected to be driven predominantly by bingo licensees and partly by organic growth in bingo, casino and sports betting. Casino, the note said, will continue to be the group's "core growth engine" and is expected to contribute 54 percent of second-quarter revenue.

The London-listed operator currently trades at a price-to-earnings ratio of 16.8, which is expected to fall to 12.5 in the 2009 fiscal year, though Numis projects earnings per share will rise by 39 percent in 2008 and 35 percent in 2009.