Impressive results from Playtech and William Hill

An interim management statement from online gaming provider Playtech for the period ending September 30, 2012 delivered strong results across the board with the exception of poker.

The firms profit share on its William Hill Online joint venture (WHO) is up 50 percent compared to the same period last year.

Other financial highlights include:

– Gross income up 32 percent to Euro 92.7 million, (Q3/2011: Euro 70.1 million) and up 5 percent on Q2/2012

– Total revenues up 30 percent to Euro 79.9 million, (Q3/2011: Euro 61.5 million) and up 2 percent on Q2/2012

Quarter-on-quarter revenue performance:

– Casino revenues up 33 percent to Euro 38.5 million, (Q3/2011: Euro 28.9 million) and up 4 percent on Q2/2012

– Bingo revenues up 17 percent to Euro 4.4 million, (Q3/2011: Euro 3.8 million) and up 1 percent on Q2/2012

– Poker revenues down 27 percent to Euro 4.1 million, (Q3/2011: Euro 5.6 million) and down 6 percent on Q2/2012

– Videobet revenues up 33 percent to Euro 2.9 million, (Q3/2011: Euro 2.2 million) and up 4 percent on Q2/2012

– Services revenues up 38 percent to Euro 26.9 million, (Q3/2011: Euro 19.5 million) and up 1 percent on Q2/2012

– Share of profit in William Hill Online up 50 percent to Euro 12.8 million, (Q3/2011: Euro 8.6 million) and up 36 percent from Q2/2012

Playtech’s Chief Executive, Mor Weizer, commented:

“Playtech has continued its strong performance into the third quarter, delivering impressive year-on-year growth across the business, in what is usually a seasonally quiet period. Encouraging progress has been made with significant licensee launches, new mobile solutions including the unique mobile hub and mobile bingo application. We anticipate the new poker liquidity programme will improve this part of the business, assisted by further licensee wins.

“PTTS, Mobenga and Ash Gaming continue to perform strongly and we expect the Services division to maintain its upward trajectory as opportunities in regulated and soon-to-be-regulated markets begin to develop.

“William Hill Online has once again exceeded expectations, proving to be a transformational partnership for William Hill and Playtech. Regardless of William Hill’s as yet undetermined final decision on the call option we remain committed to our important relationship with William Hill and the continued success of WHO going forward.

“The positive trend experienced in the third quarter has continued into the fourth quarter. Given the expected contribution of new licensees launched, further expected legislation in regulated markets such as Italian slots, the introduction of new products including sports and mobile applications and the advanced discussions the Company has held with various significant licensees, we remain very confident and excited regarding the future prospects for the business for this year and beyond.”

In related news, Playtech announced the appointment of Adam Kay as Head of Investor Relations effective December 1, 2012.

Kay will work closely with Playtech’s executive management and external investor and analyst audiences to promote Playtech’s investment case.