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PLAYTECH Q2 RESULTS PLEASE

Friday August 26,2011 : Online gambling software developer reports continued growth
 
Playtech has released its Q2-2011 numbers, reporting continued strength through the launch of new Italian products and its major contract with the Gala online and land gambling group in the UK.
 
Highlights (excluding France) include:
 
* Total revenues up 19 percent on Q2-2010 and 8 percent higher than Q1-2011
 
* Casino revenues up 24 percent on Q2-2010 to Euro 27.3 million; and 7 percent higher than Q1-2011
 
* Poker revenues down 24 percent on Q2-2010 to Euro 5.0 million; and 12 percent lower than Q1-2011
 
On an absolute basis:
 
* Total revenues up 7 percent to Euro 39.6 million (Q2-2010: Euro 36.8 million), and 8 percent higher than Q1-2011
 
* Bingo revenues totalled Euro 3.6 million, up 32 percent on Q2-2010, (Q2-2010: Euro 2.8 million); and up 5 percent on Q1-2011
 
* Videobet revenues achieved material level for the first time, generating Euro 2.0 million in Q2-2011, mainly from the rollout of the Global Draw contract
 
The company gave a trading update revealing that daily activity in terms of revenues for the first 18 days of Q3-2011 are more than 25 percent ahead of Q3-2010, and are slightly ahead of the daily average of the previous quarter. This figure excludes any contribution from share of profit in William Hill Online and PTTS, which are performing in line with expectations.
 
Operational highlights in the quarter included:
 
* Completion of Videobet’s UK rollout: migrated 20,750 machines in the year to date
 
* PTTS acquisition completed at the end of Q2-2011 on scheduled timeframe
 
* Signed software agreement with Californian Online Poker Association (COPA); further agreement with Playtech’s JV Sciplay to provide ancillary services
 
* Gala Coral contract to provide broad technology platform.
 
* Acquisition of the leading mobile sportsbook provider, Mobenga AB
 
* Regulatory approval in Malta for Live games
 
* Soft launch of Casino Gran Madrid, first locally regulated Spanish operator.
 
* Final preparations for Italian cash poker and casino games, including Buongiorno mobile launch in Q2
 
Commenting on the KPI's, Playtech's chief executive, Mor Weizer, said: "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."



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