Did you know you can earn CLchips to spend in our shop just by posting in our forums?

Playtech Grows In First Half Of 2012

30 August 2012 by CasinoListings

This story was published more than 11 years ago.

Internet wagering giant Playtech plc has announced its fiscal results for the first half of 2012, highlighting a large jump in revenues and gross income.

Key financial indicators for the period ending June 30th were:

  • Gross income up by 86% to €176.5 million (H1/2011: €95 million)

  • Total revenues up by 101% to €153.8 million (H1/2011: €76.3 million)

  • Playtech’s casino product has continued to grow strongly, delivering €71.5 million of revenues (H1/2011: €52.7 million), up 36%.

  • Adjusted EBITDA up 64% to €91.2 million (H1/2011: €55.8 million)

  • Adjusted net profit up 67% to €84.5 million (H1/2011: €50.7 million)

  • Post tax profits of €26.2 million (H1/2011: €37.9 million)

  • Adjusted EPS for the six month period rose 40% to 29.2 cents (H1/2011: 20.9 cents)

  • Interim dividend of 7.8 cents per share (H1/2011: nil)

  • Continued high cash conversion of 88% from adjusted EBITDA (H1/2011: 81%).

  • Cash balances at 30 June 2012 of €139.3 million (H1/2011: €64.3 million)

Operational highlights for the period were:

  • Playtech completed its move to a premium listing on the main market of the London Stock Exchange

  • Outperformance by PTTS, meeting the criteria for an accelerated payment of the contingent consideration of €140 million

  • Significant joint ventures in anticipation of regulatory changes agreed with both Gauselmann, the owner of Germany's leading gaming brand, Merkur, and Peermont, a leading South African gaming operator

  • Playtech acquired software developer Geneity in January to enhance the group’s sportsbook capabilities.

  • Playtech licensees launched in the newly regulated Spanish market, with further licensees looking to launch in September

  • Gala Coral progressing well, with the successful launch of Gala Casino and Gala Bingo sites

  • Penetration into Mexico through the signing of a software licensing agreement with Grupo Caliente, the largest local land-based gaming operator

  • Mobenga performing ahead of expectations with additional licensees launched

  • Paddy Power launched nine casino games in an integrated mobile solution

Playtech management issued comment on the results, with Non-Executive Chairman Roger Withers said: “Playtech’s multi-channel approach strengthens its market leading position, allowing it to maximise the potential for growth in newly-regulating markets in addition to enhancing existing relationships with traditional operators."

"In the first half of the year we recognised the growing importance of the social gaming sector and positioned ourselves to penetrate the market through innovative software licensing arrangements."

“Despite the uncertainty surrounding the future of European and US regulation, the company is ideally positioned to take advantage of changes in the online gaming market through further expansion of its joint ventures and organic growth strategy."

"The Group’s strategy, supported by its strong balance sheet, now centres on developing its highly complementary business channels: products and services, turnkey solutions, joint ventures and social gaming. Through this multi-channel approach, the Board believes the group will be in a position to maximise the potential for growth in newly-regulating markets in addition to strengthening existing relationships with traditional operators."

Playtech CEO Mor Weizer commented on the company's successful joint venture with William Hill Online, saying:

"William Hill Online recently reported the strongest interim performance of (the joint venture) since (its) creation, with the first quarter producing €3.4 million more in share of profit for Playtech than in any previous quarter."

"WHO has achieved double digit growth with an increase in operating profit (before exceptional items) of £68.9 million, growing 23% (H1/2011: £55.9 million). Playtech’s non-controlling interest resulted in a share of profit of €22.7 million before amortisation of intangibles (H1/2011: €18.7 million), up 21% for the period."

"In the fourth quarter, William Hill will have the opportunity to commence a process to acquire Playtech’s 29% stake in William Hill Online through the first of two contractual call options. We continue to engage in constructive and amicable meetings with the board and management of William Hill to discuss the future of our relationship with them."

The full presentation can be viewed online at: http://playtech-ir.production.investis.com/~/media/Files/P/Playtech-IR/r...