Q2 2012 KPIs and trading update

RNS Number : 4282J

Playtech Limited

07 August 2012

 



Playtech Limited

('Playtech' or the 'Company')

Q2 2012 Key Performance Indicators and trading update

Strong performance in second quarter

Completed move to Premium Listing on Main Market

Playtech, (LSE: PTEC) the international designer, developer and licensor of software and services for the online, mobile and land-based gaming industry, today announces its Key Performance Indicators and trading update for the three months ended 30 June 2012.

Financial highlights    

For the three months ending 30 June 2012:

§ Strong financial performance

§ Gross income up 82% to €88.1 million, (Q2/11: €48.4 million) and flat on Q1/12

§ Total revenues up 99% to €78.6 million, (Q2/11: €39.6 million) and up 5% on Q1/12

Quarter-on-quarter revenue:

§ Casino revenues up 36% to €37.1 million, (Q2/11: €27.3 million) and up 8% on Q1/12

§ Poker revenues down 12% to €4.4 million, (Q2/11: €5.0 million) and down 18% on Q1/12

§ Bingo revenues up 21% to €4.4 million, (Q2/11: €3.6 million) and up 1% on Q1/12

§ Videobet revenues up 36% to €2.8 million, (Q2/11: €2.0 million) and up 15% on Q1/12

§ Services revenues up 4% to €26.8 million on Q1/12*

§ Share of profit in William Hill Online up 7% to €9.5 million, (Q2/11: €8.8 million) and down 29% from Q1/12 reflecting strong performance in Q1/12

*PTTS purchase completed on 1 July 2011

Trading update

Daily activity for the first 31 days of Q3/12 is 24% ahead of Q3/11 and 3% below that of the daily average of the previous quarter.

Operational highlights

§ Playtech licensees, including Bet365, William Hill, Betfair, Casino Gran Madrid have launched in the newly regulated Spanish market with further licensees looking to launch in September

§ Gala Coral is progressing and the first two phases of its migration to the Playtech platform, including Gala Bingo and Gala Casino, completed successfully in July and are performing well

§ Playtech's mobile strategy is progressing well with Paddy Power launching nine casino games in an integrated mobile solution

§ Playtech's iPoker network, hosted the live iPOPS event at the Gran Casino de Barcelona. The event is a series of tournaments with a total guaranteed prize of $1 million

§ Playtech won awards for Best Poker Network, Best Bingo Network, Best Mobile Provider and Best Slot Provider at the eGaming Review B2B Awards, held on 10 May

§ The largest bingo network progressive jackpot promotion was completed in Q2/12 delivering a combined £2.5 million in prize money to players

Corporate highlights

§ Playtech progressed to the Premium Listing segment of the Official List, and was admitted to trading on the London Stock Exchange's Main Market for listed securities on 2 July

§ The Company announced the appointment of Andrew Thomas as a Non-executive Director and Chair of the Audit Committee on 19 June

§ PTTS met the conditions relating to the acceleration of the additional consideration of €140 million payable to Worldwide Online Enterprises Ltd

§ The Company completed previously announced related party transactions for a social gaming software licensing agreement with Skywind Holdings, a lease agreement for GTS's premises and an advisory agreement with Teddy Sagi on 12 June

§ January's Geneity acquisition continues to make good integration progress alongside strong performances from Mobenga and Ash Gaming

Acceleration of PTTS additional consideration

PTTS's continued strong performance in Q2 2012 has triggered the accelerated payment mechanism 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 by reference to its performance in H1 2012.

The first tranche of the accelerated payment of €42 million was paid at the end of July. The other non-interest bearing installments will be met by the Company's operating cash flows on the following dates:

§ on 31 January 2013, €35 million;

§ on 31 July 2013, €35 million; and

§ on 31 January 2014, €28 million.

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

"First half performance for 2012 has been very encouraging and all products, with the exception of poker, have achieved strong year-on-year growth. I am also particularly pleased that Playtech achieved a Premium Listing on 2 July, which marks the Company's exceptional progress since listing on AIM in 2006."

"The services division has delivered a very impressive performance and surpassed the accelerated payment threshold. This uniquely positions Playtech for future strategic revenue streams as markets continue to regulate. Although we anticipate a seasonal slowdown during the traditionally weaker summer months, I believe that the Company is well positioned to maintain the momentum into the rest of the year."

Key Performance Indicators for the quarter ending 30 June 2012

Gross income

Three months ended '000 (€)	30 Jun 12	30 Jun 11	Change %	31 Mar 12	Change %
Gross Income	88,110	48,431	82%	88,369	0%
Total Revenue	78,643	39,591	99%	75,116	5%
WHO Share of profit	9,467	8,840	7%	13,253	-29%

Revenue

Three months ended '000 (€)	30 Jun 12	30 Jun 11	Change %	31 Mar 12	Change %
Total revenue	78,643	39,591	99%	75,116	5%
Casino	37,050	27,254	36%	34,452	8%
Poker	4,381	4,977	-12%	5,319	-18%
Bingo	4,415	3,641	21%	4,377	1%
Services	26,769	440	5988%	25,683	4%
Videobet	2,778	2,047	36%	2,408	15%

Six months ended '000 (€)	30 Jun 12	30 Jun 11	Change %
Gross Income	176,479	95,049	86%
Total Revenue	153,759	76,329	101%
WHO Share of profit	22,720	18,720	21%

Six months ended '000 (€)	30 Jun 12	30 Jun 11	Change %
Total revenue	153,759	76,329	101%
Casino	71,502	52,696	36%
Poker	9,700	10,656	-9%
Bingo	8,792	7,116	24%
Services	52,452	794	6505%
Videobet	5,186	2,936	77%

Revenue - share of geographical diversity⁽¹⁾

Period	Q2 2012	Q2 2011	Q1 2012
Europe	69%	73%	70%
Asia Pacific	25%	22%	23%
Rest of the world	6%	5%	7%

Period	H1 2012	H1 2011
Europe	69%	73%
Asia Pacific	24%	22%
Rest of the world	7%	5%

Revenue - nominal change in geographical regions

Period	Q2/12 to Q2/11	Q2/12 to Q1/12	H1/12 to H1/11
Europe	87%	2%	90%
Asia Pacific	120%	11%	123%
Rest of the world	187%	11%	177%

(1) The relative share is calculated as the total royalties derived from the specific region divided by the total royalties from all regions.

Mor Weizer, Chief Executive Officer, and David Mathewson, Chief Financial Officer, will host an analyst conference call at 9.30 am on Tuesday 7 August 2012.

Details of the conference call are as follows:

Dial-in no UK: [phone]

Dial-in no US: [phone]

Conference ID: 4534010

Replay (available for one week)

Dial-in no: [phone]

Conference reference number: 4534010#

 
An audio file will be also available on the Playtech website following the conference call.

- Ends -

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.

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 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 has some 2,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies, together with 900 employees providing ancillary services

www.playtech.com

 

END

 

 

MSCGMGGRRVFGZZM