Despite French changes, online software provider turns in a creditable performance.
Playtech PLC published its third quarter and year to date figures this week, turning in a strong performance through a traditionally quiet period of the year.
Operation and Financial highlights for the period ending 30 September 2010 included:
– Gross income for the quarter up 30 percent to Euro 41.3 million (Q3/09: Euro 31.9 million)
– Total revenues up 17 percent to Euro 32.5 million (Q3/09: Euro 27.7 million)
– For the nine months to 30 September 2010, gross income up 31 percent to Euro 129.2 million (2009: Euro 98.8 million) and total revenues up 25 percent to Euro 105.4 million (2009: Euro 84.4 million)
– Excluding impact of France closure: gross income vs Q2/10 was up 1 percent, total revenues down 2 percent
– On absolute basis, gross income down 7 percent, total revenues 12 percent below Q2/10
Looking across the products of the group, casino revenues are up 17 percent to Euro 21.7 million (Q3/09: Euro 18.5 million) and down 13 percent on Q2/10. Bingo revenues totaled Euro 3.1 million, up 11 percent on Q2/10, reflecting strong growth from Virtue Fusion, reinforced by the new Italian bingo network.
Poker revenues reflected a disappointing performance, down 30 percent to Euro 5.7 million (Q3/09: Euro 8.2 million) and 21 percent lower than Q2/10. Share of profit in William Hill Online up 111 percent to Euro 8.8 million (Q3/09: Euro 4.2 million), up 15 percent from Q2/10.
Excluding impact of France closure, casino revenues are down Q3 vs Q2 by 2 percent and poker revenues down 13 percent. EBITDA for the nine months to 30 September 2010 expected to be not less than Euro 77.7 million
In a trading update, the company revealed that daily activity for the first 31 days of Q4/10 is more than 25 percent ahead of Q4/09 on a like for like basis (excluding France) and more than 12 percent ahead of Q4/09 on an absolute basis.
Activity in Q4/10 is over 7 percent above the daily average of the previous quarter.
– Betfair Casino performing strongly since launch of web-based format at the end of August
– Final launch preparations for Finnish monopoly, RAY, underway with launch in Q4
– French poker network launched at the end of June. Further licensees signed up and ready to launch in Q4 and beyond. Additional licensees in the process of obtaining regulatory approval
– Italian Bingo network growing well ahead of market, achieving market share in excess of 25 percent in September with additional licensees commencing in Q4
– Strong growth in Virtue Fusion bingo network, notable potential to expand European profile
– Videobet’s Global Draw migration project progressing well; Ladbrokes gaming machine contract won by Global Draw in August will be deployed with Videobet platform early next year
– Playtech’s strategic partner, Sportech plc, cleared as a gaming operator in New Jersey, Maine and Connecticut following detailed regulatory process.
Commenting on the KPI’s, Playtech’s Chief Executive, Mor Weizer, said:
“Gross income and total revenues for the quarter held up well over the traditionally quiet summer period, especially when excluding the impact of the closure of the French offshore market, which distorts the historic comparisons. After the seasonal slowdown and the aftermath of the World Cup, September as expected was a stronger month, and we see this positive trend continuing.”
“The recent launches of Betfair casino and our Italian Bingo licensees have performed very well from soon after launch, and will be joined by RAY in the coming months. I am also encouraged by discussions with a number of notable operators which should deliver a strong pipeline across the product range. We are making progress with work streams focused on the move to the main list and the appointment of a new CFO.”
“We are encouraged by current trading and remain confident that the Company will meet its expectations for 2010.”