Trading Statement
Playtech Limited
08 November 2007
Playtech Limited
('Playtech' or 'the Company')
Third Quarter Trading Update
Playtech (AIM: PTEC), the international designer, developer and licensor of
software for the online, mobile and land-based gaming industry, announces today
its trading update for the third quarter and the first nine months of 2007.
This has been an outstanding quarter for the Group which has registered
impressive month on month revenue growth. This has continued into October which
has recorded the Group's highest ever monthly revenue figure, significantly
higher than September's revenues.
For ease of comparison all 2006 revenues exclude contributions from the US from
where the Company's licensees withdrew over a year ago.
Financial Highlights*
• Record revenues for the quarter totalling $26.9 million representing an
increase of 81% on the $14.9 million in Q3 2006 (Q2 2007 $24.2 million):
- Casino revenues totalled $19.2 million, an increase of 51% from
$12.6 million in Q3 2006 (Q2 2007 $17.4 million)
- Poker revenues totalled $7.5 million, an increase of 266% from
$2.1 million in Q3 2006 (Q2 2007 $6.3 million)
• Monthly revenues now significantly exceed those earned prior to the US
market withdrawal
• Revenues from Asian facing licensees during the period grew by 14% from
Q2 2007 and revenues from European licensees grew by 11%, giving overall
growth of 11% on the second quarter
• Strong current trading during October - 16% growth in total revenue over
Q3 average monthly revenue
• October Event: Significant addition of Bet365 to Playtech's iPoker
network during October and additional organic growth boosting the network's
already strong liquidity.
Current Trading
Revenues for October were significantly stronger than the monthly average during
the third quarter of 2007, growing by 16%. Revenues from the Asian region
continue to grow through the organic growth of the Company's existing Asian
facing licensees. The Company expects to sign additional new Asian facing
licensees by the end of the year which should further strengthen the revenue
generation from this region. In addition, the Company expects to be in a
position to launch its Asian P2P network in the coming few months. The Company's
European facing licensees, which now generate 72% of Playtech's revenues,
continue to show strong growth as they gain market share. The successful
migration of Bet365 Poker during October, in addition to the organic growth of
the Company's existing licensees is resulting in strong poker growth in Q4. The
licensee pipeline is also strong with the Company having signed several MOUs
with land based operators in regulated markets looking to extend their reach
into the online sector. Given the significant growth opportunities in such
potential deals, the Company has accelerated its investment into such projects
from 2008 into the second half of the current year. Videobet continues to gain
momentum, having recently signed a new licensee in Central and South America
which intends to deploy a large number of terminals throughout the region.
Mor Weizer, Chief Executive Officer, commenting on the results, said today:
'We are delighted with this quarter's record breaking figures, which clearly
demonstrate the growing strength and presence of Playtech within the global
gaming sector. The Company continues to focus on adding successful and high
profile licensees, such as Bet365, and also on growing its market share in
Europe and Asia. We are continuing to focus on these growth markets, in
particular Asia, which showed a 14% increase in revenues from licensees on the
second quarter of 2007. We expect to see further growth and we are confident of
meeting our expectations for 2007 and beyond.'
Third Quarter Key Performance Indicators at 30 September 2007*
Revenues
Three months ended 30 September 30 September Change 30 June Change
'000 ($) 2007 2006 2007
Total Revenues 26,899 14,864 +81% 24,174 +11%
Casino Revenues 19,152 12,633 +51% 17,430 +10%
Poker Revenues 7,481 2,054 +266% 6,315 +19%
Share of Geographical Diversity(1)
Three months ended 30 September 30 September 30 June
2007 2006 2007
Europe 72% 53% 71%
Asia Pacific 20% 33% 20%
Rest of the World 8% 14% 9%
Nominal Change in Geographical Regions
Period Q3 2006 to Q3 Q2 2007 to Q3
2007 2007
Europe +123% +11%
Asia Pacific +1% +14%
Rest of the World -4% 0%
Nine Months Key Performance Indicators at 30 September 2007*
Revenues
Nine months ended 30 September 2007 30 September 2006 Change
'000 ($)
Total Revenues 70,865 39,338 +80%
Casino Revenues 51,797 33,919 +53%
Poker Revenues 18,017 4,862 +271%
Geographical Diversity
Share of Geographical Diversity(1)
Nine months ended September 30 2007 September 30 2006
Europe 70% 51%
Asia Pacific 21% 37%
Rest of the World 9% 12%
Nominal Change in Geographical Regions
Period 9M ended 30 Sep 2006 to 9M ended 30 Sep 2007
Europe +117%
Asia Pacific -9%
Rest of the World +15%
(1) The share is calculated as the total players' income derived from the
specific region divided by the total players' income from all regions
* All 2006 revenues exclude contributions from the US unless otherwise stated.
- ends -
For Further Information:
Mor Weizer, CEO, Playtech Ltd
c/o Bell Pottinger Tel: 020 7861 3232
www.playtech.com
David Rydell / Peter Otero
Bell Pottinger Corporate & Financial Tel: 020 7861 3232
--------------------------
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