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Playtech reports strong 3rd quarter results

Playtech PLC published its third quarter and year to date figures this week, turning in a strong performance through a traditionally quiet period of the year.

Operation and Financial highlights for the period ending 30 September 2010 included:

  • Gross income for the quarter up 30% to €41.3 million (Q3/09: €31.9 million)
  • Total revenues up 17% to €32.5 million (Q3/09: €27.7 million)
  • For the nine months to 30 September 2010, gross income up 31% to €129.2 million (2009: €98.8 million) and total revenues up 25% to €105.4 million (2009: €84.4 million)
  • Excluding impact of France closure: gross income vs Q2/10 was up 1%, total revenues down 2%
  • On absolute basis, gross income down 7%, total revenues 12% below Q2/10

Looking across the products of the group, casino revenues are up 17% to €21.7 million (Q3/09: €18.5 million) and down 13% on Q2/10. Bingo revenues totaled €3.1 million, up 11% on Q2/10, reflecting strong growth from Virtue Fusion, reinforced by the new Italian bingo network.

Poker revenues reflected a disappointing performance, down 30% to €5.7 million (Q3/09: €8.2 million) and 21% lower than Q2/10. Share of profit in William Hill Online up 111% to €8.8 million (Q3/09: €4.2 million), up 15% from Q2/10.

Excluding impact of France closure, casino revenues are down Q3 vs Q2 by 2% and poker revenues down 13%. EBITDA for the nine months to 30 September 2010 expected to be not less than €77.7 million.

In a trading update, the company revealed that daily activity for the first 31 days of Q4/10 is more than 25% ahead of Q4/09 on a like for like basis (excluding France) and more than 12% ahead of Q4/09 on an absolute basis.

Activity in Q4/10 is over 7% above the daily average of the previous quarter.

Operational highlights

  • Betfair Casino performing strongly since launch of web-based format at the end of August
  • Final launch preparations for Finnish monopoly, RAY, underway with launch in Q4
  • French poker network launched at the end of June. Further licensees signed up and ready to launch in Q4 and beyond. Additional licensees in the process of obtaining regulatory approval
  • Italian Bingo network growing well ahead of market, achieving market share in excess of 25% in September with additional licensees commencing in Q4
  • Strong growth in Virtue Fusion bingo network, notable potential to expand European profile
  • Videobet's Global Draw migration project progressing well; Ladbrokes gaming machine contract won by Global Draw in August will be deployed with Videobet platform early next year
  • Playtech's strategic partner, Sportech plc, cleared as a gaming operator in New Jersey, Maine and Connecticut following detailed regulatory process.

Commenting on the KPI's, Playtech's Chief Executive, Mor Weizer, said:

"Gross income and total revenues for the quarter held up well over the traditionally quiet summer period, especially when excluding the impact of the closure of the French offshore market, which distorts the historic comparisons. After the seasonal slowdown and the aftermath of the World Cup, September as expected was a stronger month, and we see this positive trend continuing."

"The recent launches of Betfair casino and our Italian Bingo licensees have performed very well from soon after launch, and will be joined by RAY in the coming months. I am also encouraged by discussions with a number of notable operators which should deliver a strong pipeline across the product range. We are making progress with work streams focused on the move to the main list and the appointment of a new CFO."

"We are encouraged by current trading and remain confident that the Company will meet its expectations for 2010."

Source: InfoPowa News

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