Playtech reports strong H1-2017

Online gambling and financials group Playtech plc has posted strong H1-2017 results showing continued growth driven by recent acquisitions.

The company reported the following financial highlights:

* Total revenues of Euro 421.6 million up 25 percent vs H1 2016 on a reported basis (30 percent at constant currency rates). 20 percent of growth attributable to acquisitions;
* 50 percent of Group revenues were from regulated jurisdictions in H1 2017 (FY 2016: 48 percent);
* Adjusted EBITDA of Euro 170.9 million – up 19 percent y-o-y on a reported basis and 24 percent at constant currency – in line with previous guidance;
* Adjusted diluted EPS up 21 percent at constant currency
* Gross cash at period end Euro 536 million;
* Interim dividend per share up 10 percent.

Operational highlights included:

Gaming Division

* Strong revenue performance with 28 percent growth at constant currency led by flagship online casino offering;
* Double-digit underlying growth, with a particularly strong performance in Asia;
* Recent acquisitions integrated and performing in line with expectations;
* Regulated Gaming revenues of 44 percent (H1 2016: 39 percent);
* Online software revenues from mobile of 38 percent in H1 2017 (H1 2016: 29 percent);
* Significant contracts renewed including Paddy Power Betfair, Sky Bet and Betfred;
* Landmark Sports contract signed with Greek operator OPAP;
* LIVE offering launched with world’s largest Live Casino in Riga;
* Sun Bingo contract remains challenging;
* Pipeline of new licensees focussed on large, quality omni-channel opportunities;
* Excluding acquisitions, average daily revenue in the Gaming Division for the first 53 days of Q3 2017 was down by 1 percent on Q3 2016, increasing 3 percent at constant currency.

Financials Division

* Momentum from 2016 continued into H1 with strong performance and improved KPIs;
* B2B offering further enhanced with acquisition of Alpha Capital Markets assets post period end;
* TradeTech Group brand launched to reflect the full B2B and B2C capabilities of the Financials Division;
* The Financials Division is trading in line with expectations.

Current trading and outlook

* Management confident of a strong performance in 2017 driven by both organic growth and the acquisitions made in 2016 and 2017, albeit with normalised levels of growth in the second half from Asia following unusually high levels of activity in the first half;
* Average daily revenue in the Gaming Division for the first 53 days of Q3 2017, traditionally the slowest part of the year, was up 1 percent on Q3 2016 (6 percent at constant currency) and down 9 percent on an unusually strong Q2 2017 (down 6 percent at constant currency);

Playtech chairman Alan Jackson said in his report:

“The first half of the year saw Playtech’s Gaming Division deliver strong growth with double-digit underlying growth and recent acquisitions integrated and performing in line with expectations.

“Playtech has also continued to execute on its omni-channel solution by deepening its offering in key verticals with the integration of Playtech BGT Sports creating a fully integrated best-in-class sports technology solution and the launch of the world’s largest Live Casino studio in Latvia, revolutionising the offering in a growing and dynamic channel.

“As with the Gaming Division, momentum in the Financials Division continued with improvements across all KPIs. The announced acquisition of assets from Alpha brings an important new B2B revenue stream and the creation of TradeTech Group as our operating and corporate brand for the business is an important milestone and better reflects the broadening of the division’s offering towards a full turnkey B2B financial trading solution.

“Taken all together, this proven platform for growth across the business has again delivered a strong performance and management remain confident of further strategic progress in the second half of 2017.”

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