Thursday October 29,2015 : PLAYTECH REPORTS A STRONG THIRD QUARTER
Good growth in key indicators.
Online gambling group Playtech plc has released a strong third quarter report highlighting good performances from both its gaming and financial operations.
Financial highlights include:
* Total revenues up 47 percent compared to Q3 2014 on a reported basis, with 24 percent growth excluding acquisitions and adding back the impact of the UK POC tax; and 17 percent growth on a constant currency basis excluding acquisitions and adding back the impact of the UK POC tax;
* Regulated revenues accounted for over half of group revenues in the quarter, with over 40 percent of gaming revenues from regulated markets (35 percent in Q3 2014)
Operational highlights in the gaming division that include:
* Strong growth from new and existing business with 73 percent of growth from regulated markets;
* Mobile accounted for 23 percent of software revenues in the quarter, up from 17 percent in Q3 2014;
* Positive momentum in white-label performance;
* Strong pipeline of opportunities;
Operational high lights in the financial division include:
* Pro-forma revenue growth of 36 percent vs Q3 2014 driven by customer acquisition and market volatility;
* Active CFD customers of 26,400 in the quarter, up 21 percent against the same period in 2014, with first time depositors for CFDs of 9,700, up 19 percent;
* Regulatory approval for the acquisition of Plus500 expected by the end of November;
* Formally challenging the Central Bank of Ireland's decision regarding the acquisition of Ava Trade;
Current trading and outlook:
* Average daily revenue in the gaming division for the first 27 days of Q4 2015 up 14 percent on Q4 2014 (10 percent on a constant currency basis excluding acquisitions and adding back the impact of the UK POC tax) and flat on Q3 2015;
* In the 19 trading days to 27 October 2015, the financials division saw both active CFD customers and first time depositors for CFDs, up over 20 percent against the same period in 2014.
Mor Weizer, chief executive officer of Playtech, commented:
"Playtech delivered a strong operational performance in the third quarter with reported growth of 47 percent and underlying growth of 17 percent. Three quarters of our growth in Q3 came from regulated markets which now account for over half of all group revenues.
"Our Gaming division continues to enjoy double-digit underlying growth with our strong pipeline of opportunities giving us confidence in maintaining our momentum. Our Financials division had a strong quarter driven by customer acquisition, with a focus on our direct marketing channels, and we hope to complement our growth with the completion of the acquisitions of Plus500 and Ava Trade.
"Given the strength of our business and the momentum that we are enjoying, we have confidence for the remainder of 2015 and beyond."