Playtech reports a strong Q2-2012

The publicly listed online gambling software developer and turnkey provider Playtech plc has posted a generally strong set of Q2-2012 results along with a trading update.

Key performance indicators for the three months ended June 30 2012 included the highlights:

* Gross income up 82 percent to Euro 88.1 million, (Q2-2011: Euro 48.4 million) but flat compared to  Q1-2012

* Total revenues up 99 percent to Euro 78.6 million, (Q2-2011: Euro 39.6 million) and up 5 percent on Q1-2012

* Casino revenues up 36 percent quarter-on-quarter to Euro 37.1 million, (Q2-2011: Euro 27.3 million) and up 8 percent on Q1-2012

* Poker revenues down 12 percent to Euro 4.4 million, (Q2-2011: Euro 5 million) and down 18 percent on Q1-2012

* Bingo revenues up 21 percent to Euro 4.4 million, (Q2-2011: Euro 3.6 million) and up 1 percent on Q1-2012

* Videobet revenues up 36 percent to Euro 2.8 million, (Q2-2011: Euro 2 million) and up 15 percent on Q1-2012

* Services revenues up 4 percent to Euro 26.8 million on Q1-2012

* Share of profit in William Hill Online up 7 percent to Euro 9.5 million, (Q2-2011: Euro 8.8 million) and down 29 percent from Q1-2012 reflecting strong performance in Q1-2012

* PTTS purchase completed on 1 July 2011

Management provided the following trading update:

Daily activity for the first 31 days of Q3-2012 is 24 percent ahead of Q3-2011 and 3 percent below that of the daily average of the previous quarter.

Playtech licensees, including Bet365, William Hill, Betfair, and Casino Gran Madrid have launched in the newly regulated Spanish market with further licensees looking to launch in September 2012.

The Gala Coral project is progressing and the first two phases of its migration to the Playtech platform, including Gala Bingo and Gala Casino, were completed successfully in July and are performing well

Playtech’s mobile strategy is advancing, with Paddy Power launching nine casino games in an integrated mobile solution

The company has won a number of industry awards for its products.

The largest bingo network progressive jackpot promotion yet was completed in Q2-2012, delivering a combined GBP 2.5 million in prize money to players

The highlight of Playtech’s corporate achievements was the admission of the company to trading on the London Stock Exchange’s Main Market for listed securities on 2 July.

The earlier of acquisition of PTTS, and the subsequent success of the company has led to Playtech accelerating the payment of an additional consideration of Euro 140 million payable to Worldwide Online Enterprises Ltd in three tranches through to 2014. PTTS achieved an annualised adjusted EBITDA in excess of Euro 40 million in H1 2012.

Playtech also completed its previously announced related party transactions for a social gaming software licensing agreement with Skywind Holdings, a lease agreement for GTS’s premises and an advisory agreement with major shareholder Teddy Sagi on 12 June

Integration of January’s acquisition of Geneity continues alongside strong performances from Playtech subsidiaries Mobenga and Ash Gaming

Playtech’s Chief Executive, Mor Weizer, said: “First half performance for 2012 has been very encouraging and all products, with the exception of poker, have achieved strong year-on-year growth. I am also particularly pleased that Playtech achieved a Premium Listing on 2 July, which marks the company’s exceptional progress since listing on AIM in 2006.”

“The services division has delivered a very impressive performance and surpassed the accelerated payment threshold. This uniquely positions Playtech for future strategic revenue streams as markets continue to regulate. Although we anticipate a seasonal slowdown during the traditionally weaker summer months, I believe that the company is well positioned to maintain the momentum into the rest of the year.”

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