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Playtech Posts First Half 2015 Financial Results

Internet betting giant Playtech plc has posted its first half 2015 financial results, noting a large growth in both revenues and profits.

Key financial indicators for the period ending June 30th, 2015 were:

  • Revenues up 33 percent at Euro 286 million;

  • EBITDA up 16 percent at Euro 112.9 million;

  • Adjusted net profit up 19 percent at Euro 115 million;

  • Reported Net Profit of Euro 833.9 million - up 11 percent;

  • EPS up 19 percent at 39 Euro cents;

  • Strong operating cashflows supporting a 19 percent increase in H1 total dividend payout;

Corporate highlights were:

  • Strong, broad based growth across regions and products from new and existing business;

  • Strategy of focussing on regulated and soon-to-be regulated markets continues to drive growth - 40 percent of H1 Gaming revenues (H1 2014: 35 percent, H2 2014: 38 percent) from regulated markets. 80 percent of incremental H1 Gaming growth from regulated markets;

  • New licensees signed together with more products and services provided to existing licensees;

  • After the period end, accelerated GBP 75 million consideration agreed under marketing services agreement with Ladbrokes, conditional on completion of the merger of Ladbrokes and Gala Coral;

  • Strong pipeline with significant opportunities across multiple geographies;

  • Creation of the Financials division through M&A to provide regulated revenues in a high-growth industry, leveraging infrastructure and existing expertise;

  • TradeFX, now called Markets Limited, acquisition completed in May - strong pro-forma H1 2015 performance;

  • Plus500 and Ava Trade acquisitions expected to complete by the end of September, subject to regulatory approval;

  • Firm plans to drive further growth and financial performance in the combined Financials division once all companies are part of the Playtech Group

  • Average daily revenue in the Gaming division for the first 55 days of Q3 2015 is up 15 percent on Q3 2014 which benefitted from the impact of the 2014 World Cup, but down 2 percent on Q2-2015, with Q2 being a strong quarter and Q3 the traditionally slowest quarter;

  • In the first 55 days of Q3-2015, Markets Limited enjoyed a strong performance with CFD customers up 19 percent against the same period in 2014; and first time depositors (FTDs) for CFDs up 12 percent;

  • Management has confidence in continued strong growth for the remainder of 2015 and beyond

Commenting on his company's performance, Playtech Chairman Alan Jackson said, "We have made significant progress against all aspects of our strategy during the first half of the year. We have completed a series of strategic acquisitions to create and enhance our new Financials division, a high growth and regulated industry, and our continued operational delivery across all business segments has translated into a strong financial performance across all key metrics, with revenues up by a third in the half year. "

"Our Gaming business continues to go from strength to strength with our strategy of focussing on regulated markets driving growth. Our pipeline remains strong, with significant opportunities across all geographies, as customers seek to benefit from our market-leading omni-channel offering and our best-of-breed products in each and every product category."

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