A good year for Playtech

Internet gambling software developer Playtech plc has released its latest full year performance numbers, covering the period to 31 December 2011 and showcasing an impressive year of business activity.

Financial highlights of the report include:

* Gross income* up 41 percent to Eruo 243.6 million (2010: Euro 173.1 million)

* Total revenues up by 46 percent to Euro 207.5 million (2010: Euro 142.3 million)

* Adjusted EBITDA increased by 22 percent to Euro 125.5 million (2010: Euro 103.1 million)

* Adjusted net profit increased by 21 percent to Euro 112.8 million (2010: Euro 93.2 million)

* Net cash balances at year end of Euro 137.3 million (2010: Euro 68.5 million) following a GBP 100 million fundraising in December, providing new capital to support joint ventures in newly regulated markets, and funding of targeted acquisitions

* Recommended combined interim and final dividend for 2011 of 16.5 cents per share

Management’s assessment of current trading remains optimistic:

“Playtech has experienced a strong start to the year enjoying healthy momentum across its operations including those it has acquired recently. The Directors are especially encouraged by the performance of PTTS, where trading is significantly above management expectations.

“Like-for-like growth in daily average revenues for the first nine weeks of 2012 are up over 23 percent compared to the same period in 2011. The daily average revenues versus Q4 2011 on the same basis are over 3 percent ahead.”

Operational highlights of the past year included:

* Playtech’s Services business is performing ahead of expectations since the acquisition of PTTS in July, which has also been fundamental in securing two joint venture agreements announced in January 2012

* Four technology acquisitions since January 2011 are all performing strongly: Intelligent Gaming, Mobenga, Ash Gaming and Geneity.

* Agreements with major operators for new products, included: Betfair, Gala Coral, Paddy Power, Boylesports, SNAI, Sisal, Caliente, COPA and others

* The company enjoyed a successful launch of Italian cash poker and casino products, and preparation for the Spanish regulated market is well advanced

* Establishment of new development capability in Kiev has progressed well

Management provided an update on the group’s move to a Premium Listing, saying that Playtech has not lost sight of its strategic goal to qualify for a Premium Listing on the London Stock Exchange.

“The company and its advisers have undertaken a significant amount of work to prepare for a main market admission and expect to make the move as soon as possible,” Roger Withers, non-executive chairman, said.

“These are really exciting times for Playtech which has once again delivered an excellent set of financial results, and has consolidated its position as the clear market leader in the provision of software and services to the online gaming industry.

“It has developed its product and service offering to encompass all aspects of online gaming, including a full suite of products, cutting edge management systems, integration with land-based operations and the marketing and other operational skills that enable operators to get the most out of their online businesses.

“Playtech has continued to focus on regulated markets with organic development and targeted acquisitions that will ensure it can take best advantage of the opportunities created by the structural changes underway across the worldwide gaming industry.

“The company’s strategy will centre on developing three key elements: products and services, turnkey solutions, and joint ventures to maximise the potential for revenue growth and market share in newly-regulating markets, regardless of how each jurisdiction chooses to regulate.”

“David Mathewson,Playtech’s chief financial officer was appointed to the board of directors in May 2011. As a dynamic non-executive director he fully engaged with the business and since moving to the executive team has become a key contributor to both financial management and external relationships.”

Full details of the report are at: http://production.investis.com/playtech_tools/rns/rnsitem?id=19957456