Playech Releases Positive Second Quarter Profits

Online gaming company Playtech has unveiled its second quarter results for the year, and the results show many positive signs for the company.

Mor Weizer, Playtech Chief Executive commented on the results saying, "It has been a very positive quarter for Playtech, continuing a solid start to 2011 and included both the finalisation of Videobet's UK roll-out and the completion of the PTTS acquisition."

“Major licensee wins were announced, including the significant win of COPA in California; and we have also announced the signing of a significant contract with Gala Coral to provide its online technology platform across all channels. We were first in the market to launch casino and cash poker tables in Italy, including SNAI and SISAL as well as other existing and new licensees, and welcomed both William Hill Online and Titan into the Italian network.

“In addition, we have positioned ourselves to offer a platform for the rapidly growing mobile sportsbook segment, through the acquisition of Mobenga. This is a strategic acquisition given the importance of mobile and the accelerated penetration rates of mobile.

“These developments reflect the success of our ongoing investment in the business and many months of intense preparatory work. Each is set to enhance our future regulated market income stream and the licensee pipeline remains strong across the product range. We would expect to announce further wins in the coming months.

“Revenues and player activity have grown throughout the quarter and while we are moving into what is traditionally the quietest seasonal period, we are pleased with Playtech’s core business and the newly acquired PTTS, which has shown good resilience and is performing in line with our expectations."

Second quarter highlights for the company included:

• Total revenues up by 19% over the same period last year and up 8% over the first quarter.
• Casino revenues up by 24% over the same period last year and up 7% over the first quarter.
• Poker revenues down by 24% over the same period last year and down 12% over the first quarter.

Overall Basis Numbers:

• Total revenues up 7% over the same period last year and 8% higher than the first quarter to €39.6 million.
• Bingo revenues of €3.6 million up 32% over the same period last year and up 5% from the first quarter.
• Videobet revenues reached material level for the first time ever, and generated €2.0 million.

Playtech also announced that third quarter profits so far (18 days into the period) were up 25% ahead of the same period in 2010.

Operational highlights for Playtech in the second quarter were:

• Completion of Videobet's rollout, with 20,750 migrated so far this year.
• PTTS acquisition finalized on schedule.
• Signed a contract with Gala Coral to provide broad technology platform.
• Acquisition of Mobenga AB, a mobile sportsbook provider.
• Approval by Malta regulators for Live games.
• Signed a contract with California Online Poker Association with further agreement with Playtech's JV Sciplay to provide ancillary services.
• Soft launch of first regulated Spanish operator, Casino Gran Madrid.
• Preparing for Italian cash poker and casino games, which included launch of Buongiorno mobile in the second quarter.