Acceleration of PTTS additional consideration

RNS Number : 6387I

Playtech Limited

27 July 2012

 



Playtech Limited

('Playtech' or the 'Company')

Acceleration of PTTS additional consideration

Playtech, (LSE: PTEC) the international designer, developer and licensor of software and services for the online, mobile and land-based gaming industry, announces that the conditions related to the acceleration of the additional consideration of €140 million payable to Worldwide Online Enterprises Ltd in respect of the acquisition of PT Turnkey Services Limited ('PTTS') as described in the Company's announcement of 10 March 2011 have been fulfilled.   

Further to the Q1 KPI announcement on 2 May 2012, PTTS's continued strong performance in Q2 2012 has triggered the accelerated payment of the entire additional consideration of €140 million (the 'Additional Consideration'). The acceleration has occurred by virtue of PTTS having achieved an annualised adjusted EBITDA in excess of €40 million in the first two quarters of 2012, which is an approximate 100% increase since completion of the acquisition.

In accordance with the original acquisition terms, the Additional Consideration has become payable in four non-interest bearing instalments and will be met by the Company's operating cash flows on the following dates:

§ within one month from the date hereof, €42 million;

§ on 31 January 2013, €35 million;

§ on 31 July 2013, €35 million; and

§ on 31 January 2014, €28 million.

The strong overall performance achieved by Playtech during Q1 2012, which has been previously announced, has continued into Q2 2012. The Company will be announcing its Q2 KPIs and IMS on 7 August 2012.

Commenting on the accelerated payment, Mor Weizer, Chief Executive Officer of Playtech, said:

"The acquisition of PTTS has been very successful for Playtech with its financial performance exceeding expectations. The acquisition has strategically positioned Playtech as a turnkey service provider for the online gambling industry and provided profitable new revenue streams. It has also enhanced our ability to partner with third parties in regulated markets."                                                                                                                                        

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Further information

Playtech Ltd Mor Weizer, Chief Executive Officer David Mathewson, Chief Financial Officer c/o Pelham Bell Pottinger	[phone]
Pelham Bell Pottinger David Rydell / Olly Scott / Guy Scarborough	[phone]

About Playtech

Playtech develops unified software platforms and content for the online and land-based gaming industry, together with providing a range of ancillary services such as marketing, hosting and CRM services.

The Group's capabilities enable the delivery of an integrated software or turnkey solution, with players accessing 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 entities such as lotteries, and new entrants making their online gaming debut, particularly in newly-regulated markets.

Founded in 1999, Playtech is listed on the London Stock Exchange plc and has some 2,000 employees located in development centres in five countries.  Its leading gaming applications include casino, poker, bingo, sports betting, live, mobile and social gaming, casual and fixed odds games.

www.playtech.com

 

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