UPDATE 3-888 focusing on business-to-business deals

* In talks with over 50 potential strategic partners

* Sees Q1 revenues slightly lower than Q4

* Shares down over 6 percent

* Seeks acquisitions

* FY EBITDA up 23 pct to $55.7 mln; consensus was $53.7 mln

(Adds CEO, analyst comment, shares)

By Matt Scuffham

LONDON, March 30 (Reuters) - Online gaming firm 888 (888.L) said it was in talks with over 50 potential strategic partners on Monday as it looked to expand its business-to-business activities to offset tougher trading in its consumer division.

888 reported better-than-expected 2008 results but said first-quarter revenue was expected to be slightly lower than the fourth quarter as the broader economic climate remained challenging, sending its shares lower.

Chief Executive Gigi Levy told Reuters the company is focusing on the expansion of its business-to-business division, which takes 888's existing software and infrastructure and provides those services to third parties.

"If you're just doing business-to-consumer in a recession, that's going to be challenging. The business-to-business side gives us the ability to grow market share even if the overall market doesn't grow," CEO Gigi Levy told Reuters.

Levy expects the company to announce more agreements in the second quarter and to exceed the 14 business-to-business deals agreed in 2008 in the current year.

"We have a pipeline of more than 50 additional deals. A few of them are household names and a few are prominent players in online gaming that are using somebody else's services today.

"There are a few deals out there that could mean immediately a few million dollars to the bottom line. It's not transformational but it's very enhancing," Levy said.

888 announced a deal with Britain's biggest horseracing publication, the Racing Post, on Monday, its fourth strategic partnership agreement so far this year.

The company will provide the Racing Post with an online gaming operation, including customer support and payment processing services and Levy said he expects the transaction to be earnings enhancing this year.