Shares in 888 Holdings were up on the FTSE All Share in morning trading after the gambling company reported a strong rise in income in the fourth quarter ended 31 December 2010.

The group's total operating income increased 18 per cent from the previous quarter to $71 million.

888 said it had seen a 71 per cent rise in "active customers" from the third quarter to the fourth quarter, taking active customer numbers to 283,000.

In the full year ended 31 December 2010 group total operating income increased six per cent to $262 million. EBITDA is expected to be in line with consensus forecasts, the group said.

In the New Year 888 said revenue had continued to grow, with the group adding that it was still in discussions with Ladbrokes.

At the end of January 888 had $67 million in cash and cash equivalents.

Gigi Levy, Chief Executive Officer of 888 Holdings, said, "We are very pleased with the results delivered during the last quarter of 2010 - especially the record 18% quarterly sequential growth. Our marketing activities have driven record numbers of players to our sites, and growth was achieved across our business lines. We are particularly encouraged by our Poker business, which showed 28% sequential growth.

"2011 has started well and given that our various business initiatives are progressing as planned we expect to grow the business further during the year."

By 10:35 shares in 888 Holdings were up 6.29 per cent on the FTSE All Share to 46.50 pence per share.