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Online gambling firm 888.com has reported a 298 per cent jump in first-half pre-tax profits from continuing operations.

The company said that profits before tax from its ongoing businesses climbed to $19 million (£9.36 million) in the six months to the end of June. That compared to profits of just $5 million (£2.46 million) for the corresponding period in 2006.

However despite appearing to have successfully restructured its operations in the wake of an effective US ban on online gambling websites, 888's withdrawal from the lucrative American market has ultimately slashed its profits.

Last year, before the ban came into force, the Gibraltar-based firm reported pre-tax profits of $48 million (£23.7 million).

Nonetheless 888 chief executive Gigi Levy said that in spite of the company losing the majority of its 26 million registered customers and 55 per cent of its revenues following the implementation of the ban last October, the firm had achieved a successful turnaround of its operations.

"We have maintained our track record of profitability, have achieved a record performance in our continuing business and continue paying dividend in line with our policy," he said.

Mr Levy added that 888 had started the second half of 2007 strongly, achieving "record" turnover in July – traditionally one of the seasonally weakest months of the year.

Meanwhile 888, whose websites include Pacific Poker and Casino on the Net, confirmed that it is still in talks with US authorities over a possible retrospective prosecution. The company said that it was still too early to predict the outcome of the negotiations, which reportedly concern the taking of bets in the US prior to the implementation of the effective ban of online gaming websites there.

The unlawful internet gambling enforcement effectively banned online gaming companies from trading in the US by barring the transfer and handling of payments from such activities.