SOURCE: Reuters

(London, England) — Online gambling company 888 Holdings Plc (888.L: Quote, Profile , Research) posted a 37 percent rise in third-quarter revenue and said on Tuesday trading was even stronger in October 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 United States, said net gaming revenues totalled $52.5 million in the three months to end-September.

Chief executive 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."

At 0930 GMT, 888 shares, which had performed in line with the travel and leisure sector <.FTASX5750> over the past 12 months, were up 0.4 percent at 121 pence to value the business at 415 million pounds ($854 million).

Levy said 888 had recovered well after losing 56 percent of its business when the U.S. market was closed late in 2006.

"I find it amazing we managed to turn it into an incredibly profitable and growing organisation less than a year after this happened," 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.

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.