Playtech Q3 results "outstanding"


RIP Brian
Feb 22, 2001

Playtech results show group's highest yet monthly revenues

London-listed online gambling turnkey provider Playtech has delivered a Quarter 3 2007 report which will please its investors, hailing it as "outstanding" with impressive month on month revenue growth and record revenues for October.

Playtech quarterlies since the company exited the US market last year exclude contributions from the United States.

Financial highlights of the report include:

* Record revenues for the quarter totalling $26.9 million representing an increase of 81 percent on the $14.9 million in Q3 2006 (Q2 2007 $24.2 million):

* Casino revenues totalled $19.2 million, an increase of 51 percent from $12.6 million in Q3 2006 (Q2 2007 $17.4 million)

* Poker revenues totalled $7.5 million, an increase of 266 percent from $2.1 million in Q3 2006 (Q2 2007 $6.3 million)
Monthly revenues now significantly exceed those earned prior to the US market withdrawal

* Revenues from Asian facing licensees during the period grew by 14 percent from Q2 2007 and revenues from European licensees grew by 11 percent, giving overall growth of 11 percent on the second quarter

Strong current trading is reported for the month of October, augering well for Q4 numbers going forward. October's revenues were 16 percent up in total revenue over Q3 average monthly revenue

The company flags the addition of Bet365 to its iPoker Network as a significant step forward in October, boosting the network's already strong liquidity.

"We are delighted with this quarter's record breaking figures, which clearly demonstrate the growing strength and presence of Playtech within the global gaming sector," said Playtech CEO Mor Weizer. "The Company continues to focus on adding successful and high profile licensees, such as Bet365, and also on growing its market share in Europe and Asia. We are continuing to focus on these growth markets, in particular Asia, which showed a 14 percent increase in revenues from licensees on the second quarter of 2007.

"We expect to see further growth and are confident of meeting our expectations for 2007 and beyond."

London analysts were quick to comment on the numbers, with Numis analyst Richard Carter opining that if Playtech's recently signed Chinese deals are as significant as the market believes, and the group can cross-sell casino side games into the recently migrated Tribeca poker licensees, the price target could move up to the 550-600 pence a share level.

Numis has predicted pretax profit for Playtech of $69.3 million for 2007 and $91.2 million for 2008.

Formed in 1999 in an initiative by Israeli businessman Teddy Sagi, Playtech was floated on the AIM early in 2006 for around GBP550 million at a flotation price of 257p. Along with other British listed Internet gambling companies it took a heavy knock when the US Congress passed legislation banning financial transactions with online gambling companies late last year. Since then it has fought back, diversifying into other markets, building up its licensee base and introducing a wide range of new products and games.

In a high profile agreement (see previous InfoPowa report) the company is developing gaming software for the Manchester United poker website. An agreement was signed between the provider and Playtech licensee Betfred and Manchester United to initiate and develop the Man Utd branded gaming site. The exclusive deal has a duration of three years.

Users who are viewing this thread