Playtech (AIM: PTEC), the international designer, developer and licensor of software to the online and land-based gaming industry, today announces its Key Performance Indicators (KPI's) for the quarter ended 30 June 2008 and also provides an update on current trading.
"The second quarter of 2008 was a further significant period of growth for Playtech. The Company reported revenues of $42.4 million, representing an increase of 75% on the corresponding quarter in 2007 and a nine per cent increase on the previous quarter. This level of performance, particularly considering the impact of the Euro 2008 football tournament and traditional seasonality, is very impressive with licensees continuing to win relative market share. For the year to date, total revenues have increased by 85 per cent. The Company has had a good start to July with further continued growth in both casino and poker. With organic growth and the launch of new licensees in Q3 and beyond we look forward to a strong quarter and the Board is highly confident of the prospects for the full year."
Mor Weizer, Chief Executive Officer
Financial Highlights
- Record revenues for the quarter totalling $42.4million, representing an increase of 75% on the $24.2million earned in Q2 2007 and an increase of 9% on the $39million achieved in Q1 2008.
- Casino revenues totalled $30.8million, an increase of 77% from $17.4million in Q2 2007 and an increase of 13% from $27.2million in Q1 2008
- Poker revenues totalled $11 million, an increase of 74% on the comparable 2007 quarter and in line with Q1 2008
- Total revenues for H1 2008 were $81.4million representing an increase of 85% from the $44million in H1 2007:
- Casino revenues increased by 78% compared to H1 2007 to $58million
- Poker revenues increased by 109% compared to H1 2007 to $22million
- July has started well with further growth in both casino and poker
Operational Highlights
- Playtech raised £112million, before expenses, by way of a Placing of up to 21,620,946 new Ordinary Shares ("the Placing") at a price of 520p per Placing
- The Placing Shares represent approximately 9.9% of the Company's issued Ordinary Shares immediately prior to the Placing
- The net proceeds of the Placing are to be utilised to finance acquisition opportunities
- 10 new licence agreements signed to date in 2008, including well established operators such as Betsson, one of the largest publicly traded online gambling operators to the European market, Vista Global Limited, the group behind the celebrity endorsed Hollywood Poker brand and Genting Stanley Alderney, a subsidiary of Genting International, the leading international gaming company
- New licensees expected to launch during Q3
- Strong pipeline of potential licensees with 8 MOU's signed so far in 2008 which is in line with Playtech's focus on well established online gaming operators and leading operators in regulated markets
- The Company has signed MOU's and agreements with leading Italian operators which will lead to a leading position in the Italian market. Playtech is in the process of establishing a poker network for the Italian market
- Commenced homologation process in various regulated jurisdictions
- Soft launch of Asian P2P games during H1. Full roll out expected during Q3
- Development of Flash Poker product completed. Full roll out expected during Q3
- Established a internal content unit which will significantly increase the number of games released to Playtech licensees
- Exclusive licensing agreement signed with Paramount Digital Entertainment, which will enable Playtech licensees to offer games featuring two very well-known Paramount Pictures brands, "Gladiator" and "The Untouchables"
Operations
Playtech has made strong progress during the period with total Group revenues growing in the second quarter to $42.4million, a 75% increase from that achieved in the second quarter of 2007 and 9% above that achieved in the previous quarter. The Group's casino business continued to show strong growth, with year-on-year revenues up 77% to $30.8million and up 13% from the previous quarter. Poker revenues grew by 74% to $11million compared to the same quarter in 2007 and remained steady compared to the previous quarter. This was a significant achievement considering the Euro 2008 football competition and warm weather.
In line with Playtech's strategy to diversify geographically, focus on regulated markets and migrate licensees from competitors, the Group has added 10 new licensees in the first six months of 2008 and have also signed 8 MOU's. The new licensees include Betsson, one of the largest publicly traded online gambling operators to the European market, Vista Global Limited, the group behind the celebrity endorsed Hollywood Poker brand and Genting Stanley Alderney, a subsidiary of Genting International, a leading integrated resorts specialist with over 20 years of international gaming expertise and global experience in developing, operating and/or marketing acclaimed casinos, to which Playtech will supply its market leading casino and poker products. This brings the total number of licensees to 60.
The Group continues to expand its product offering with the soft launch of its Asian P2P games during H1, with full roll out expected in Q3. In addition, development of the Flash Poker product has been completed and is under testing and the full release of the product to all poker licensees is expected to occur during Q3. During the period Playtech established a content unit aimed at delivering an increased number of games to its licensees. Playtech has also signed a four-year, exclusive licensing agreement with Paramount Digital Entertainment, which will enable Playtech licensees to offer games featuring two very well-known Paramount Pictures brands, "Gladiator" and "The Untouchables. Furthermore, the Group is currently redeveloping its Bingo offering and the new product is expected to roll out in late Q3 early Q4.
Placing
During the period Playtech raised £112million, before expenses, by way of a Placing of up to 21,620,946 new Ordinary Shares at a price of 520p per Placing Share. The Placing Shares represented approximately 9.9% of Playtech's issued Ordinary Shares immediately prior to the Placing. The net proceeds of the Placing are to be utilised to finance acquisition opportunities. Although Playtech believes a material proportion of future growth of the Company can be generated organically. Playtech has also identified a number of acquisition opportunities which, if completed, would have the potential to accelerate the development of the Company and add significant value. The Company has commenced due diligence in relation to one of these acquisition opportunities and so far progress has been satisfactory.
Current Trading
The Company has enjoyed good current trading with growth in July in both casino and poker. The licensee pipeline is also strong with 8 MOU's signed so far in 2008 with the momentum of Q2 continuing into Q3the Group expects to sign additional new licensees during the year which should further strengthen its revenue generation in the future.
Mor Weizer, Chief Executive Officer, commenting on the KPI's, said today:
"This has been another outstanding quarter for the Group. With significant new licence agreements signed during the period and with the soft launch of the Asian P2P games and Flash Poker product Playtech is well positioned to grow in Q3 and beyond.
The Group also successfully raised £112million during Q2 and the net proceeds are to be utilised to finance acquisition opportunities. Playtech has demonstrated its ability to leverage acquisitions and believe this money raised will provide the Group with an extremely strong balance sheet that will allow it to take advantage of further opportunities that the current market offers and in relation to that the Group has commenced due diligence on a potential acquisition opportunity."
The Company has now entered its close period and its 2008 interim results will be announced on 3 September.
Second Quarter Key Performance Indicators at 30 June 2008
Revenues
Three months ended ‘000 ($) | 30 June | 30 June | Change | 31 March | Change |
Total Revenues | 42,423 | 24,174 | +75% | 38,971 | +9% |
Casino Revenues | 30,775 | 17,430 | +77% | 27,201 | +13% |
Poker Revenues | 11,020 | 6,315 | +74% | 11,014 | 0% |
Share of Geographical Diversity [1]
Three months ended | 30 June | 30 June | 31 March |
Europe | 72% | 72% | 73% |
Asia Pacific | 21% | 20% | 20% |
Rest of the World | 7% | 8% | 7% |
Nominal Change in Geographical Regions
Period | Q2 2008 to Q2 2007 | Q2 2008 to Q1 2008 |
Europe | +83% | +13% |
Asia Pacific | +93% | +22% |
Rest of the World | +43% | +2% |
First Half Year Key Performance Indicators at 30 June 2008
Revenues
Six months ended ‘000 ($) | 30 June | 30 June | Change |
Total Revenues | 81,394 | 43,966 | +85% |
Casino Revenues | 57,976 | 32,645 | +78% |
Poker Revenues | 22,034 | 10,536 | +109% |
Share of Geographical Diversity [1]
Six months ended | 30 June | 30 June |
Europe | 73% | 70% |
Asia Pacific | 20% | 21% |
Rest of the World | 7% | 9% |
Nominal Change in Geographical Regions
Period | H1 2008 to H1 2007 |
Europe | 97% |
Asia Pacific | 83% |
Rest of the World | 42% |
[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
Mor Weizer, Chief Executive Officer, and Guy Emodi, Chief Financial Officer, will be hosting an analyst conference call today at 11.30am (BST) on 16 July 2008. The timing of the call has been set to allow analysts from outside of the UK to participate.
Details of the conference call are as follows:
Dial-in no UK: +44 208 515 2302
Dial-in no US: +1 480 629 9562
Conference title: Playtech Q2 KPIs
Replay (available for 1 week):
Dial-In No: +44 207 190 5901
PIN code: 139998#
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For Further Information:
Mor Weizer, CEO, Playtech Ltd
c/o Bell Pottinger
www.playtech.com
Tel: 020 7861 3232
David Rydell / Chris Hamilton
Bell Pottinger Corporate & Financial
Tel: 020 7861 3232
About Playtech
Playtech develops unified software platforms for the online 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 intercompatible 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 700 personnel distributed globally, around seventy five percent of whom are engaged in research and development of current and future gaming technologies.
Website: www.playtech.com
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