Sales for internet gambling company 888 rose 23 per cent in the second quarter but fell short of expectations - sending its shares down some six per cent yesterday.
Chief Executive John Anderson said revenues had been hit by the traditional sector slowdown each second quarter and by the World Cup this year, which dragged customers away from their computers to watch television.
Anderson said he was not concerned by a nine per cent drop in the number of players in the second quarter to 281,402.
"We're going for a higher quality of person, and the net gaming revenue per active casino member is well up. It's $628 instead of $554 in the first quarter, so I'm happy with that," he said.
But Investec analyst Matthew Gerard said revenues from both poker and casino had fallen short of his expectations.
"We remain concerned over the business model and risk profile as 888 drives a higher yield per player from a smaller active player base," he said.
888, which owns 888.com, Pacific Poker, Casino-on-Net and Reef Club Casino, said its casino revenues rose nine per cent year-on-year to $45 million (£24.4 million), while poker revenues climbed 48 per cent to $35 million (£19.02 million).
Analysts at Numis securities said 888's second quarter seasonal decline compared favourably with that of sector leader PartyGaming.
They noted that in the first half, 48 per cent of 888's gaming deposits came from outside the United States.
"We think this is a key attraction especially given the recent Department of Justice action," they added, referring to the U. arrest of David Carruthers, former chief executive of online gaming rival BetonSports, on racketeering charges.
Shares across the sector have tumbled following the arrest amid fears US authorities have started an ongoing crackdown on online gaming in all forms.
888 might take advantage of low share prices in the sector to buy an Internet bookmaker that is not involved in taking bets from the United States, said Mr Anderson.
Shares closed down 6p at 148.5.
