SOURCE: The Press Association

Internet gaming firm 888 Holdings hailed a turnaround in fortunes after profits from continuing operations more than doubled last year.

The group, which operates Pacific Poker, saw business severely affected by the U.S. internet gaming ban in 2006.

It has since launched online bingo services on top of the core casino and poker games, and targeted other overseas regions in Europe and Asia.

Last year pre-tax profits came in at 45.8 million U.S. dollars (£23.1m), compared with 22.2 million U.S. dollars for the previous year, a comparison adjusted to exclude U.S. operations. The profits figure was slightly ahead of the 45 million dollars expected by City analysts.

The Gibraltar-based group enjoyed a double digit increase in the number of active quarterly casino and poker customers, up by 11 percent to 209,000. Total revenues for the firm during 2007 were up 38 percent at 216.9 million dollars (£109.5m).

Net gaming revenues from the casino arm were up 33 percent to 118 million U.S. dollars (£59.6m), with poker 18 percent ahead at 81 million U.S. dollars (£40.9m).

This year has also seen the launch of a new bingo brand, 888Ladies, and gaming partnerships signed with groups such as snooker hall operator Rileys.

Chief Executive Gigi Levy said 2007 was a "year of transformation" for the group, and that this year had started well with "further growth". He said: "With many strategic initiatives now underway, we see a bright future for the business."

Broker Numis Securities said 888's results were ahead of its expectations.

As a result, analyst Richard Carter said he "felt comfortable" raising his profits forecast for this year by 1 percent, and the year after by 2.6 percent.