Playtech continues to shine

Playtech plc, a UK-listed online gambling software provider, has filed its interim results for the six months to June 30 2014, underlining an impressive financial performance and solid business deals in ket markets.

H1-2014 financial highlights include:

* Total revenues up by 21.2 percent to Euro 214.4 million (H1-2013: Euro 176.8 million)

* Adjusted EBITDA up 28.2 percent to Euro 97.6 million (H1-2013: Euro 76.2 million)

* Adjusted Profit up 44.8 percent to Euro 96.8 million (H1-2013: Euro 66.8 million); reported profit attributable to the owners of the parent Euro 75.6 million (H1-2013: Euro 413.6 million including gain on sale of 29 percent stake in William Hill Online)

* Adjusted EPS up 45.4 percent to 33.3 Euro cents (H1-2013: 22.9 Euro cents)

* Increased interim dividend of 8.9 Euro cents per share (H1-2013: 7.8 Euro cents per share)

* Cash balances at 30 June 2014 of Euro 366 million (30 June 2013: Euro 576.2 million) following payment of special dividend.

Operational highlights listed by the group include:

* Completion of Ladbrokes migration to Playtech’s full product suite and IMS infrastructure at the end of April;

* Agreement with Holland Casino for the provision of casino, Live casino, bingo and poker ahead of forthcoming regulations in the Netherlands, following a competitive tender;

* Completion of roll-out of first-to-market Coral Connect multi-channel solution converging retail, online and mobile;

* Significant turnkey white-label arrangement with Trinity Mirror;

Post balance sheet events flagged by Playtech were:

* Two landmark full turnkey agreements with a major media brand in Italy and with Caliente, the largest Mexican gambling group;

* About to become the principal software provider to BGO, a new and fast growing UK operator in which Playtech is to invest GBP 10 million for a 33.3 percent equity stake;

* Soft launch of web and mobile casino for Sky Bet; full launch of Live casino expected soon;

* Launched dedicated Live casino service for Finland’s Ray from licensee-owned environment in Helsinki.

Management reports that current trading is strong, with daily average revenues for the first 59 days of Q3-2014 up over 21 percent versus the comparable period last year, but down approximately 2 percent from Q2-2014 due to Q3 being a traditionally quieter quarter.

Management is confident of exceeding current market expectations for the full year.

Playtech non-executive chairman, Alan Jackson, said Thursday:

“During the first six months of the year, Playtech continued to improve the way it develops its products, while growing revenue to an all-time high and managing its cost base, to again deliver an outstanding set of interim results.

“With an emphasis on customer needs and player experience, Playtech has added supplementary features to its web, mobile, land-based and live offering and continues to capitalise on its customer focused strategy.

“Our strategy for future success concentrates on improving and diversifying the quality of earnings with an emphasis on opportunities in regulated and soon to be regulated markets. Recent announcements of landmark turnkey agreements in three important regulated markets, combined with additional significant licensing agreements, such as Holland Casino and extensions of existing relationships, including Sky, reflect the Group’s ability to execute on its strategy and creates the building blocks for future growth.”

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