Playtech 3rd Quarter Earnings
Wednesday, November 9, 2011 : Company continues to perform well up to expectations
Online gambling software and games developer Playtech plc released its Q3 2011 results this week, showcasing another strong performance with the promise of meeting expectations for the full year.
Highlights from the results to September 30 include:
* Gross income totalled Euro 70.1 million, (Q3/10: Euro 41.3 million)
* Total revenues totalled Euro 61.5 million, (Q3/10: Euro 32.5 million)
Excluding new services division – comprises revenues generated by PTTS, acquired on 1 July 2011, together with some non-material reclassification of services revenues from within ‘Other Revenues':
* Gross income up 23 percent on Q3/10 and 5 percent above Q2/11 to Euro 50.6 million
* Total revenues up 30 percent on Q3/10 and 7 percent above Q2/11 to Euro 42.0 million
The breakdown of revenue streams shows:
* Casino revenues up 34 percent to Euro 28.9 million, (Q3/10: Euro 21.7 million) and up 6 percent on Q2/11
* Poker revenues down 2 percent to Euro 5.6 million, (Q3/10: Euro 5.7 million) but up 13 percent on Q2/11
* Bingo revenues up 24 percent to Euro 3.8 million, (Q3/10: Euro 3.1 million) and up 5 percent on Q2/11
* Videobet revenues totalled Euro 2.2 million, (Q3/10: Euro 500 000) and up 6 percent on Q2/11
* Services division provided revenue contribution of Euro 19.5 million for the quarter
* Share of profit in William Hill Online down 2 percent to Euro 8.6 million, (Q3/10: Euro 8.8 million) down 3 percent from Q2/11
Playtech also updated its nine months year-to-date numbers:
* Gross income up 28 percent to Euro 165.2 million, (2010: Euro 129.2 million)
* Total revenues up 31 percent to Euro 137.9 million, (2010: E uro 105.4 million)
Excluding services division and impact of French closure:
* Gross income up 20 percent to Euro 145.3 million
* Total revenues up 22 percent to Euro 118.0 million
The company gave a trading update on the first month of Q4 2011, reporting:
Daily activity for the first 31 days of Q4/11 is 20 percent ahead of Q4/10 for software royalties and 5 percent ahead of the average for Q3/11. Services revenues are slightly ahead of Q3/11 and the business is performing in line with expectations.
Operational highlights covered in the latest report include:
* PTTS acquisition completed on 1 July 2011 and the business is performing in line with management's expectations, with various opportunities are being explored in regulated markets
* Successful launch of eight casino and cash poker licensees on to the Italian network after enabling regulations in July
* August acquisition of the mobile gaming enabler Mobenga, delivering a market-leading mobile platform; launched products for licensees in Q3/11 including William Hill, Skybet, Sportsbet and IASbet
* Paddy Power casino successfully migrated to Playtech at end of Q3, joining its existing poker and bingo products
* Preparation for launch of COPA play for fun in California; ‘CalShark' site successfully launched in early Q4
* Bingo team completed migration of Italian network and integration of GTS games platform
* Project to migrate Gala Coral's gaming product suite to Playtech progressing well
Playtech plc chief executive officer, Mor Weizer, reported: "Playtech's diverse revenue streams have delivered a strong performance over the traditionally quieter third quarter thanks to the launch of Italian cash poker and casino products, improvements in poker revenues following the change in the market structure after the suspension of one of the largest poker operators, and the continued strength of bingo and Videobet, where the UK roll-out has now completed."
"PTTS has been integrated exactly as planned and is performing well and primed to add significant value as we deliver new turnkey projects and JVs."
"New product launches have performed well and we are in discussions with a number of significant gaming businesses looking to utilise Playtech's market leading technology and services. The Company is also in discussions with potential joint venture partners in different regulated markets."
"Despite continued regulatory uncertainty in certain European markets, these results demonstrate the strength of Playtech's business giving us confidence for the full year. Playtech is positioned to establish itself as a leading supplier and a JV partner in different regulated jurisdictions and discussions are underway in regulated and soon to be regulated markets."
