Online gambling company 888 Holdings Plc posted a 37 per cent rise in third-quarter revenue and said yesterday trading was even stronger this month following the launch of a TV advertising campaign in Britain.

Gibraltar-based 888, which like most of its rivals was hit hard by the ban on internet gambling in the US, said net gaming revenues totalled $52.5 million in the three months to the end of last month.

Chief executive officer Gigi Levy said the relatively cold summer in Europe helped raise profit as people stayed indoors more. "Overall, it is a mixture of the contribution of weather and the new promotions we introduced during the quarter."

Mr Levy said 888 had recovered well after losing 56 per cent of its business when the US market was closed late last year. "I find it amazing we managed to turn it into an incredibly profitable and growing organisation less than a year after this happened," Mr Levy said.

The company has since focused on revenue-sharing deals with companies in Latin America, Eastern Europe and Asia, as well as seeking to increase its presence in the lucrative EU market.

Mr Levy said 888, which launched in Italy during the third quarter, would extend operations both in the EU and in other markets in coming months. The company has acquisition targets and $100 million in cash reserves, he said without elaborating.

"In every market where we can work openly through television advertising, sponsoring football teams we can outperform others," he said.

888's only previous acquisition, $32.4 million for an online bingo operation, has doubled its profit in a year.

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