New licenses lift Playtech
8 February 2013
(PRESS RELEASE) -- Playtech, the international designer, developer, licensor and provider of software and services for the online, mobile, TV and land-based gaming industry, today announces its Interim Management Statement for the three months ended 31 December 2012 and a trading update ahead of announcing its full year results on 14 March 2013.
§ Gross income up 26% to €98.8 million (Q4/11: €78.4 million)
§ Total revenues up 20% to €83.9 million (Q4/11: €69.6 million) and 5% higher than the €79.9 million achieved in Q3/12
§ Share of profit from William Hill Online ("WHO") up 71% to €15.0 million (Q4/11: €8.8 million)
Quarter-on-quarter revenue performance:
§ Casino revenues up 27% to €41.7 million (Q4/11: €32.8 million)
§ Services revenues up 17% to €27.0 million (Q4/11: €23.1 million)
§ Bingo revenues up 14% to €4.7 million (Q4/11: €4.1 million)
§ Poker revenues down 27% to €4.0 million (Q4/11: €5.5 million)
§ Videobet revenues unchanged at €2.7 million (Q4/11: €2.7 million)
For the 12 months ended 31 December 2012:
§ Gross income up 51% to €368.1 million (2011: €243.6 million)
§ Total revenues up 53% to €317.5 million (2011: €207.5 million); an increase of 19% excluding the impact of acquisitions made in the Period and the comparable period
§ Share of profit from WHO up 40% to €50.6 million (2011: €36.1 million)
§ Net cash* as at 31 December 2012 of €51.9 million (31 December 2011: €137.3 million)
- Net cash defined as cash and cash equivalents less bank borrowings
Average daily revenue for the first 36 days of 2013 is up over 9% on Q1/12 and flat on Q4/12.
§ Gala Coral completed its phased migration launching its sports betting offering, where it joins Gala Casino and Gala Bingo, enjoying the cross-product capabilities of Playtech's Integrated Management System
§ Playtech's slot games offering launched first by its Italian licensees following the introduction of new slots regulations in Italy
§ Betclic and Everest poker products launched on the iPoker.fr and iPoker.com networks
§ Betfair commenced its migration onto the iPoker network with completion planned for July 2013
§ Betfred launched its mobile casino to initially include a selection of 20 table and slot games, marking the first step towards a full mobile offering planned to launch in 2014
William Hill Online
WHO delivered its largest quarterly contribution to the Company since inception, marking a third consecutive year of double-digit growth.
On 29 November 2012, the Board of William Hill commenced the valuation process as part of its call option to acquire Playtech's minority stake in WHO. The valuation process will conclude at the end of February 2013, following which William Hill will have a short period of time to decide if it will exercise the option.
WHO is at the heart of William Hill's current and future success and, as a major supplier to WHO, Playtech is committed to maintaining its close working relationship with William Hill and supporting WHO's consistent growth, as is the case with all of the Company's licensees.
Playtech's Chief Executive Officer, Mor Weizer, commented, "Playtech has again delivered an exceptional fourth quarter performance enhanced by WHO's record quarterly profit and the significant growth in software revenues with Casino, Services and Bingo demonstrating double-digit increases."
"The Company achieved robust organic growth and benefitted from innovative cross-selling initiatives with several major licensees. Playtech's new product and licensee launches, together with the launch of slots in Italy, have exceeded expectations and build further on the Company's solid growth platform."
"I am also pleased to announce that our joint venture with Gauselmann has been awarded licenses by Schleswig Holstein for online casino and sports betting."
"As a result of the impressive performance in Q4 and since the beginning of the year, the Board is very comfortable with market expectations for the full year and looks forward to 2013 with confidence."