Q3 Key Performance Indicators

RNS Number : 1239B

Playtech Limited

21 October 2009

 



Playtech Limited

('Playtech' or 'the Company')

Key Performance Indicators for the quarter ending 30 September 2009 

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 for the third quarter ended 30 September 2009. 

Financial highlights

• Gross Income for the nine months of 2009 was €98.8 million, 24% ahead of the same period in 2008 (€80 million)
  
  

• Gross Income for the quarter rose 12% to €31.9 million, (Q3/08: €28.4 million) but declined 4% from €33.1 million in Q2/09; Q3/09 results have been adversely impacted by a run of unusual sport results reducing the sport betting margins of William Hill Online ("WHO")and hence reducing the share of income contributed from WHO during the period
  

• Share of income in WHO in Q3/09 was €4.2 million, compared with a contribution of €5.3 million in Q2/09. Share of income is anticipated to improve assuming football margins in the WHO business return to being in line with historic trading
  
  
• Adjusted EBITDA for the Group for the nine months is expected to be not less than €66 million
  
  
• Net cash at 30 September 2009 of €67.8 million, (before payment of interim dividend totalling €21.4 million payable on 23 October 2009)

• Total revenues in Q3/09 were broadly flat at €27.7 million, (Q2/09: €27.8 million) as expected in this seasonally slow summer quarter
  -  Casino revenues remained flat at €18.5 million, (Q2/09: €18.5 million)
  -  Poker revenues declined 3% to €8.2 million, (Q2/09: €8.4 million)

• WHO share of profit for the nine months is €14.5 million

[1] Gross Income is defined as income from royalties plus profits generated from the Company's share in WHO.

[2] Adjusted EBITDA includes the Share of income in WHO 

Operational highlights

• Continued progress with the development of Playtech's poker network in Italy. Progress towards the launch of various operators in Q4 remains on track. 

• Launch of a new version of Playtech's leading poker software, including a new multi-currency option, available in £, US$ and €, that enables players to enjoy the game in their local currency and bypass the currency conversion process
  
  
• Launch of a new version of Playtech's bingo product which will be further boosted by increased liquidity contributed by existing and new licensees
  
  
• WHO is continuing to make good progress and performance outside sports betting was better than expected. With the launch of a new Playtech casino on www.williamhill.com before the end of October, integration of WHO's poker and casino operations on to the Playtech platform will be complete
  
  
• Successful launch of more than 15 new games including the extremely popular branded content of Marvel with Incredible Hulk and Iron Man
  
• 
  
• Launch of the first two iPhone compatible casino games 

Current trading

Activity improved towards the end of Q3/09 and this momentum continued into the beginning of the fourth quarter. Initial trading in October is strong with daily average royalty revenues more than 5% ahead of Q3/09. New licensee development continues, reflecting Playtech's continued excellent progress with its core regulated markets strategy. This trading improvement, together with anticipated revenues from new licensees, confirms the Board's expectation of better trading conditions in the final quarter of the year. 

Third quarter Key Performance Indicators at 30 September 2009

Gross Income

Three months ended '000 (€)	30 Sep 09	30 Sep 08	Change %	30 Jun 09	Change %
Gross Income	31,860	28,410	12%	33,147	-4%
Total Revenue	27,697	28,410	-3%	27,819	0%
WHO Share of profit	4,163	-		5,328	-22%

Total Revenue

Three months ended '000 (€)	30 Sep 09	30 Sep 08	Change %	30 Jun 09	Change %
Total revenue	27,697	28,410	-3%	27,819	0%
Casino revenue	18,521	20,498	-10%	18,538	0%
Poker revenue	8,167	7,564	8%	8,387	-3%

Revenue - share of geographical diversity [1]

Three months ended	30 Sep 09	30 Sep 08	30 Jun 09
Europe	63%	69%	62%
Asia Pacific	31%	25%	32%
Rest of the world	6%	6%	6%

Revenue - nominal change in geographical regions

Period	Q3/09 to Q3/08	Q3/09 to Q2/09
Europe	7%	2%
Asia Pacific	42%	-2%
Rest of the world	27%	22%

First nine months Key Performance Indicators at 30 September 2009 

Gross Income 

Nine months ended '000 (€)	30 Sep 09	30 Sep 08	Change %
Gross income	98,800	79,998	24%
Total revenue	84,351	79,998	5%
WHO share of profit	14,449	-	-

Total Revenue 

Nine months ended '000 (€)	30 Sep 09	30 Sep 08	Change %
Total revenue	84,351	79,998	5%
Casino revenue	56,094	57,259	-2%
Poker revenue	25,431	21,514	18%

Share of geographical diversity

Nine months ended	30 Sep 09	30 Sep 08
Europe	63%	71%
Asia Pacific	31%	22%
Rest of the world	6%	7%

Nominal change in geographical regions 

Period	9M/09 to 9M/08
Europe	17%
Asia Pacific	84%
Rest of the world	23%

[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

There will be a conference call for analysts at 1.00 pm. The details are as follows:

Dial-in details: 00 44 20 8515 2302

Conference title: Playtech Q3 Key Performance Indicators

Replay (available for one week) until 28/10/09

Dial-In No: [phone]

PIN code: 142321#

- Ends -

For further information contact:

Mor Weizer, CEO, Playtech Ltd  Shuki Barak, CFO, Playtech Ltd c/o Bell Pottinger Corporate & Financial	[phone]
Piers Coombs / Bruce Garrow Collins Stewart	[phone]
Mumtaz Naseem  Deutsche Bank	[phone]
David Rydell / Olly Scott / Samantha Boston Bell Pottinger Corporate & Financial	[phone]

About Playtech

Playtech develops unified software platforms for the online and land based gambling industry, primarily targeting existing online operators wanting to upgrade their system; sportsbooks looking to diversify and land-based operators making their online debut. Playtech gaming applications - online casino, poker, bingo, mobile gaming, live gaming, land-based kiosk networks and fixed-odds games - are fully inter-compatible and can be freely incorporated as stand-alone applications, accessed and funded by players through the same user account and managed by the operator by means of a single powerful management interface. Founded in 1999, Playtech has over 750 personnel distributed globally, around seventy five percent of whom are engaged in research and development of current and future gaming technologies.

www.playtech.com

 

END

 

 

MSCFBLLLKBBEFBL