Strong revenues in Playtech’s latest interim report
News on 25 Apr 2013
News on 25 Apr 2013
Online gambling software developer Playtech plc reports that in the first quarter of this year it can boast strong performance metrics in almost every sector in which it is involved.
In an interim management statement covering the three molnth to end March 2013, the group highlighted:
* Gross income up 16 percent to Euro 102.5 million (Q1/12: Euro 88.4 million)
* Total revenues up 16 percent to Euro 87.5 million (Q1/12: Euro 75.1 million) and 4 percent higher than the Euro 83.9 million achieved in Q4/12
Quarter-on-quarter revenue performance numbers showed:
* Casino revenues up 28 percent to Euro 44.1 million (Q1/12: Euro 34.5 million)
* Services revenues up 2 percent to Euro 26.3 million (Q1/12: Euro 25.7 million)
* Bingo revenues up 9 percent to Euro 4.8 million (Q1/12: Euro 4.4 million)
* Sport revenues up 128 percent to Euro 4.6 million (Q1/12: Euro 2.0 million)
* Poker revenues down 18 percent to Euro 4.4 million (Q1/12: Euro 5.3 million)
* Videobet revenues down 2 percent to Euro 2.4 million (Q1/12: Euro 2.4 million)
* Net cash (cash and cash equivalents, less bank borrowings) as at 31 March 2013 of Euro 56.6 million (31 December 2012: Euro 51.7 million)
In its trading update, Playtech reported that average daily revenue for the first 24 days of Q2/13 is up over 10 percent on Q2/12 and in line with Q1/13, as expected.
Operational highlights included:
* Betfair commenced its migration onto the iPoker network with completion planned for July 2013
* Betfred launched mobile casino and mobile live casino, marking the first step towards a full mobile offering planned to launch in 2014
* Playtech launched its live gaming offering in Spain in partnership with Casino Gran Madrid
* Sky launched mobile bingo app on Apple iOS
* Playtech signed landmark agreements with Ladbrokes to provide full product suite and innovative marketing services from 1 May 2013
* Betfair launched Playtech bingo
* Paddy Power migrated its Live Casino to Playtech in April introducing new Paddy Power dedicated facility
* Playtech’s revenues come mainly from Europe (66 percent), and Asia Pacific (28 percent and rising).
Commenting on its now completed parternship in William Hill Online, Playtech recorded that on April 15 2013 William Hill plc completed its acquisition of Playtech’s 29 percent stake in William Hill Online for GBP 423.75 million, delivering a cash-on-cash return of more than 3.5 times, excluding software royalties.
Playtech CEO Mor Weizer said Thursday:
“Playtech has made a strong start to 2013, delivering a robust quarterly performance driven by our flagship casino product, LIVE, and in particular mobile casino and Mobenga.
“Our landmark transaction with Ladbrokes, under which Playtech will provide its full product suite and marketing advisory services, clearly demonstrates Playtech’s unique position. Ladbrokes is one of the largest and most respected brands in the betting and gaming industry, and we are very excited about the prospects for this venture and are committed to making it a great success.
“With the completion of the sale of our stake in William Hill Online, we are focused on exploring strategic alternatives that will enable us to continue the growth and development of the business, and in conjunction with this process are consulting shareholders with respect to potential returns.
“In view of the Company’s performance during year to date, the Board is committed to paying an interim dividend at or above the level of that declared last year.”
