2nd Quarter Results

RNS Number : 0355Q

Playtech Limited

28 July 2010

 



Playtech Limited

('Playtech' or the 'Company')

Q2 2010 Key Performance Indicators and trading update

Continued strength into traditional seasonal slowdown

Launch of Italian bingo network

Playtech, (AIM: PTEC) the international designer, developer and licensor of software for the online, mobile and land-based gaming industry, today announces its Key Performance Indicators and trading update for the three months ending 30 June 2010.

Financial highlights

§ Gross income for the quarter totalled €44.5 million, up 34% on Q2/09 and 2% ahead of Q1/10

§ Total revenues up 32% on Q2/09 and 2% on Q1/10 to €36.8 million

§ Product revenues:

§ Casino revenues up 34% on Q2/09 to €24.9 million, 3% higher than Q1/10

§ Poker revenues down 13% on Q2/09 to €7.3 million and 15% lower than Q2/10, owing to the impact of the Football World Cup and seasonality effect

§ Bingo revenues totalled €2.8 million, 61% up on Q1/10, reflecting increasing contribution from Virtue Fusion

§ Share of profit in William Hill Online of €7.6 million, up 43% on Q2/09 and up 4% from Q1/10

§ H1 2010 EBITDA expected to be not less than €53 million

Trading update

Daily activity for first the 26 days of Q3/10 is more than 10% ahead of Q3/09 on an absolute basis and more than 20% ahead of Q3/09 on a like for like basis excluding France. Activity declined by 12% compared to Q2/10 on the same like for like basis reflecting the combined impact of the closing stages of the football World Cup and normal seasonal slowdown. On an absolute basis, including France, Q3/10 is 19% below the daily average of the previous quarter.

Launch of a new Italian bingo network commences with SNAI and Eurobet, two of Italy's leading gaming companies, which will be joined by additional members in the near future. With Sisal, SNAI, Eurobet and others to come, Playtech's position as the provider of choice for Italian operators and players will be further strengthened.

Operational highlights

§ Italian Bingo commenced with Sisal which gained 18% market share in May.  Further licensees and new network announced today, and more licenses to come in Q3

§ Contract win of Finland's RAY in May. Launch preparations going well for launch in Q4

§ French poker network launched with a number of well-established local operators signed; more licensees to come in Q3

§ Virtue Fusion & GTS performing ahead of expectations after a good Football World Cup with new licensees and games launched

§ Videobet UK roll-out on track with large shop-test progressing well

§ Five industry awards won by Playtech and Virtue Fusion in June, including best poker software, best bingo software, best poker network and best bingo network

Commenting on the KPI's, Playtech's Chief Executive, Mor Weizer, said:

"The second quarter's performance continues our strong start for the year and provides a solid base for the full year. Operationally we are well positioned with significant licensee wins such as RAY in Finland and the launch of our new Italian bingo and French poker networks bringing a broad range of well recognised local operators.  I am pleased by the continuing growth of Virtue Fusion and GTS and together they will help to mitigate the closure of the French casino market which will be felt in the second half of the year." 

"The decline in current trading is in line with our expectations with sportsbook operators focusing on World Cup betting during the period, and is not anticipated to be a useful indicator of performance throughout Q3. We continue to see significant growth opportunities over the near and medium term."

Key Performance Indicators for the quarter ending 30 June 2010

Gross Income

Three months ended '000 (€)	30 Jun 10	30 Jun 09	Change %	31 Mar 10	Change %
Gross Income	44,474	33,146	34%	43,431	2%
Total Revenue	36,833	27,818	32%	36,059	2%
WHO Share of profit	7,641	5,328	43%	7,372	4%

Total Revenue

Three months ended '000 (€)	30 Jun 10	30 Jun 09	Change %	31 Mar 10	Change %
Total revenue	36,833	27,818	32%	36,059	2%
Casino revenue	24,913	18,538	34%	24,197	3%
Poker revenue	7,275	8,387	-13%	8,523	-15%
Bingo revenue	2,755	63	n/a	1,712	61%

Revenue - share of geographical diversity [1]

Three months ended	30 Jun 10	30 Jun 09	31 Mar 10
Europe	63%	62%	63%
Asia Pacific	30%	32%	30%
Rest of the world	7%	6%	7%

Revenue - nominal change in geographical regions

Period	Q2/10 to Q2/09	Q2/10 to Q1/10
Europe	+39%	+1%
Asia Pacific	+27%	+0%
Rest of the world	+72%	+1%

First half Key Performance Indicators at 30 June 2010 

Gross Income 

Six months ended '000 (€)	30 Jun 10	30 Jun 09	Change %
Gross income	87,905	66,940	31%
Total revenue	72,892	56,654	29%
WHO share of profit	15,013	10,286	46%

Total Revenue 

Six months ended '000 (€)	30 Jun 10	30 Jun 09	Change %
Total revenue	72,892	56,654	29%
Casino revenue	49,110	37,573	31%
Poker revenue	15,798	17,263	-8%
Bingo revenue	4,467	91	n/a

Share of geographical diversity

Six months ended	30 Jun 10	30 Jun 09
Europe	63%	63%
Asia Pacific	30%	31%
Rest of the world	7%	6%

Nominal change in geographical regions 

Period	H1/10 to H1/09
Europe	+36%
Asia Pacific	+28%
Rest of the world	+66%

[1] The relative share is calculated as the total players' income derived from the specific region divided by the total players' income from all regions

- Ends -

For further information contact:

Playtech Ltd Mor Weizer, Chief Executive Shuki Barak, Chief Financial Officer Ross Hawley, Head of Investor Relations c/o Pelham Bell Pottinger	[phone]
Collins Stewart Piers Coombs / Bruce Garrow	[phone]
Deutsche Bank Mumtaz Naseem	[phone]
Pelham Bell Pottinger David Rydell / Olly Scott / Samantha Boston	[phone]

About Playtech

Playtech develops unified software platforms and content for the remote and land-based gaming industry. Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games. Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface - the IMS. The system's fully integrated, cross-platform capability enables players to access online, broadcast, mobile and server-based gaming terminals, through a single account.

New licensees include existing online operators upgrading or diversifying their offering, land based casino groups, government sponsored companies such as lotteries, and new entrants making their online gaming debut, particularly in the newly regulated markets.

Founded in 1999, Playtech is headquartered in the Isle of Man and has over 1,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies.

www.playtech.com

 

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