Punters return to gaming sites after World Cup slump

The firm, which runs casino, bingo and sport-betting websites, blamed an industry-wide slump in online poker for a 43 per cent fall in pre-tax profits to $8.4 million (5.4m) in the six months to June, against $14.9m last year.

888 said demand for its poker and casino websites was depressed further during the World Cup, but revenues for poker jumped 15 per cent in August, returning to normal levels for the time of year.

The group said it hoped new software and a new 3D online casino would tackle a decline in interest seen across the market. The number of poker players dropped industry-wide by 25 per cent between January and July, which worsened during the World Cup. Revenue was also hit by a weakness in the euro and pound against the dollar.

Chief executive Gigi Levy said: "The market has been challenging on a number of fronts, from the weak economic environment and overall poker weakness to the impact of the World Cup on poker and casino activity.

"Our decline was roughly in line with general online poker trends but we have taken steps to address it."

Levy said its new software offered "a fresh new look and feel" with improved features, game play and user experience.

The firm is considering potential mergers - following in the footsteps of industry peers PartyGaming and Bwin - in a bid to secure the future of its online poker and casino business.

Levy said: "We look at consolidation as one of the possible routes to realising our full value and feel that longer term this is the direction the industry will take."

Shares in 888 closed unchanged at 37p.