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Playtech Unveils Another Set Of Strong Results

Online wagering software developer Playtech plc has released its first quarter 2012 financial results, highlighting strong growth in gross income and total revenues.

Company performance for the period ending March 31st, 2012 showed:

  • Gross income up 90% to €88.4 million, (Q1/2011: €46.6 million) and up 13% on Q4/2011

  • Total revenues up 104% to €75.1 million, (Q1/2011: E uro 36.7 million) and up 8% on Q4/2011

Quarter-on-quarter revenue breakdown included:

  • Casino revenues up 35% to €34.5 million, (Q1/2011: €25.4 million) and up 5% on Q4/2011

  • Poker revenues down 6% to €5.3 million, (Q1/2011: €5.7 million) and down 3% on Q4/2011

  • Bingo revenues up 26% to €4.4 million, (Q1/2011: €3.5 million) and up 6% on Q4/2011

  • Videobet revenues up 171% to €2.4 million, (Q1/2011: €900,000) and down 10% on Q4/2011

  • Services revenues up 11% to €25.7 million on Q4/2011

  • Share of profit in William Hill Online up 34% to €13.3 million, (Q1/2011: €9.9 million) and up 51% from Q4/2011

Company highlights for the first quarter were:

  • Services division, of which PTTS is a significant component, delivered an outstanding performance, influenced by both organic growth and a new agreement with an existing licensee to provide marketing consultancy and operational services for the Asian market

  • In accordance with the original terms of the PTTS acquisition, the determination of the Additional Consideration of €140 million is set once the EBITDA performance achieves the target of €20 million in two consecutive quarters. In addition, such target is required to be achieved when the first quarter is over €8 million and the second quarter is higher than the first. As a result of the strong performance in PTTS reflected by EBITDA of over €9 million in Q1,2012, the Board believes there is an increased likelihood of accelerated payment of the Additional Consideration

  • January's Geneity acquisition is making good integration progress alongside strong performances from Mobenga and Ash Gaming, which are both ahead of expectations

  • Intention to enter into an agreement to amend the MoU announced on 17 April relating to the potential acquisition of certain social gaming assets and businesses to a software licensing agreement (see previous InfoPowa reports on CTXM, Viaden, Slots Farm and Zeda Poker)

  • MoU signed regarding the intention to acquire or lease the office space currently occupied by subsidiary Gaming Technology Solutions in London, UK, ahead of the intended move to a Premium Listing on the Main Market of the London Stock Exchange

  • Preparations are well advanced for the start of business in the Gauselmann joint venture, an agreement with Merkur Interactive GmbH that will see the duo create an online gaming operation focused on the German market.

  • Playtech licensees, including Bet365, Betsson, Sportingbet, and Unibet, have launched in the newly regulated Danish market

  • Several licensees are in advanced preparation for launch in Spain ahead of new regulations expected in H2,2012

  • Software licensing agreement announced with Caliente, Mexico's largest land-based gaming operator, covering Playtech's online casino product, including table and slot games and the IMS.

  • Successful launch of Boyles Casino onto the Playtech platform in February

  • Gala Coral launch preparation with Playtech casino, bingo, poker and mobile sports at an advanced stage

  • Agreement signed with Freemantle to launch game titles for 'Britain's Got Talent' and 'The X Factor'

Commenting on his company's performance Playtech CEO Mor Weizer said:

"Playtech has made an excellent start to 2012. Year-on-year growth across all our products has been strong, with the exception of poker. The services division is performing ahead of management's expectations, which has provided us the confidence to agree a discounted accelerated payment of the PTTS acquisition's initial consideration, whilst also looking increasingly certain to trigger the additional consideration threshold.

"We expect the services division to continue growing as the exciting opportunities in markets such as Germany and Spain come on stream. 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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