Playtech gets it right again

The Isle of Man headquartered online gambling group Playtech plc posted a strong H1-2013 report Thursday, showcasing rising revenues and a plethora of business initiatives.

Interim Results for the six months ended 30 June 2013 included:

* Gross income (total revenue plus income from associate) up by 10 percent to Euro 194.9 million (H1 2012: Euro 176.5 million)

* Total revenues up by 15 percent to Euro 176.8 million (H1 2012: Euro 153.8 million)

* Adjusted EBITDA up 3 percent to Euro 94.3million (H1 2012: Euro 91.2 million)

* Underlying adjusted EBITDA up 13 percent to Euro 78.9 million (H1 2012: Euro 69.8 million) (exc. WHO-Skywind)

* Adjusted net profit up 0.5 percent to Euro 84.9 million (H1 2012: Euro 84.5 million)

* Underlying adjusted net profit up 11 percent to Euro 69.7 million (H1 2012: Euro 62.8 million)

* Underlying adjusted EPS up 10 percent to 23.9 Euro cents (H1 2012: 21.7 Euro cents)

* Interim dividend of 7.8 Euro cents per share, maintaining the same per share level as last year.

* Cash balances at 30 June 2013 of Euro 576.2 million (H1 2012: Euro 139.3 million)

The company reported the following operational highlights:

* Landmark agreement with Ladbrokes to provide a full product suite and innovative marketing services from 1 May 2013, followed by the launch of the Vegas tab in July

* Bolt-on acquisition of PokerStrategy.com, complementing Playtech’s poker offering and PTTS marketing division

* Betfair’s migration onto the iPoker network successfully completed in June and Playtech bingo launched

* Mobile launches, including:

a) Betfred launched mobile casino and mobile live casino, marking the first steps towards a full mobile offering planned to launch in 2014

b) Sky launched a mobile bingo app on Apple iOS

c) Bet365 launched mobile live

Further significant progress with live gaming offering, including

a) Launch of live gaming in Spain in partnership with Casino Gran Madrid

b) Paddy Power migrated its live Casino to Playtech in April with a dedicated facility

Playtech also completed a number of other important operational initiatives in the period:

a) Further penetration into regulated markets including France, Mexico and Spain

b) Geneity’s sports platform is gaining significant traction and signed a number of new licensees

c) Various industry awards

Management reports current trading and outlook as:

Daily average revenues for the first 60 days of Q3/12 are up over 10 percent versus the comparable period, but down approximately 1 percent from Q2/13 in line with the traditional and seasonal slowdown. Management is confident of achieving market expectations for the full year.

Roger Withers, non-executive chairman of Playtech, said:

“Once again Playtech’s tenacity and drive have been demonstrated in these results as it has focused on deepening its licensee relationships; creating innovative new content; and providing its customers with cutting edge products and services.

“As online gaming continues to focus on mobile, it is pleasing to see our investment in this increasingly important market paying-off across many product areas.

“I am pleased to announce an interim dividend of 7.8 Euro cents. The company continues to capitalise on its customer-focused strategy and strong balance sheet: Playtech can look to the future with confidence and optimism.”

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