AGM Statement

RNS Number : 6312H

Playtech PLC

21 May 2014

 



Playtech plc

("Playtech" or the "Company")

Annual General Meeting Statement

At this morning's Annual General Meeting, Alan Jackson, Playtech's Chairman, will make the following statement:

"I am pleased that Playtech achieved another year of exceptional growth. Over 2013, total revenue increased 17% to €367.2 million. Stripping out the share of profit from William Hill Online, Adjusted EBITDA grew 17% to €159.4 million.

As previously announced, given the Company's excellent full year results, the Board has recommended a final dividend payment of 15.4 € cents per share, which gives a total ordinary dividend of 23.2 € cents per share for the year, as well as the special dividend of 34.1 pence per share paid in March. In aggregate, approximately €188 million will be paid as dividends for the 2013 financial year. This is a significant achievement for Playtech.

The Company's cash position at the end of 2013 stood at €527.4 million as a result of its continued strong performance and the successful sale of its stake in William Hill Online for approximately £424 million. This transformational transaction delivered a substantial return of over 3.5x the original investment.

Given the cash-generative nature of Playtech's business and its existing cash resources, the Board, with its advisers, continues to review the most effective use of the Company's cash resources, assessing the potential for further value-enhancing acquisitions, joint ventures and partnerships, particularly focusing on regulated markets. Playtech has a proven ability to generate value through successful acquisitions, and management is confident that this will continue.

Playtech's long-term strategy of organic development, joint ventures and targeted acquisitions has enabled it to take advantage of significant opportunities in the global gambling industry.

In July, the Company acquired PokerStategy, the world's largest poker affiliate business, which has strengthened licensee relationships and increased the appeal of Playtech's poker offering.

Additionally, Playtech signed two landmark agreements with Ladbrokes to revolutionise the bookmaker's digital offering. Three weeks ago we were pleased to announce the completion of the migration of the entire Ladbrokes online gaming offer onto Playtech's platform, after which Ladbrokes adopted the Company's IMS as the infrastructure for all its betting and gaming operations.

The Board believes that Playtech's huge experience with, and commitment to, regulated markets - combined with its proven track record - makes it the natural choice for operators in regulated markets.

Governments around the world are increasingly recognising the revenue potential of regulating online gambling. Playtech's long-time focus on regulated markets has ensured it is ideally positioned to benefit from opportunities in a geographically diverse range of regulated and soon-to-be-regulated markets, such as Italy, France, Spain, Denmark, Latvia, Estonia, Mexico, Puerto Rico, the Netherlands and South Africa. The Company remains optimistic for future development in other markets, including the US, and maintains a close watch on appropriate legislative developments in these markets.

The Board was pleased that earlier this year its largest shareholder, Brickington Trading Limited, chose to release 29.3 million shares from its holding creating additional free float and liquidity in Playtech's issued share capital.

During 2013 the Company's share price performed well, closing 73% higher than it had opened. We believe that recent price performance is representative of short-term concerns at a broader industry level. Playtech's broad geographical and product diversification helps it mitigate against localised events, and the Company continues to manage the business with a focus on sustainable revenue growth, adapting to changing local regulatory environments.

Playtech is committed to the highest levels of corporate governance. As previously announced on 10 October 2013, Roger Withers retired as Chairman and as a director of Playtech. Playtech has benefitted enormously from Roger's invaluable service and leadership since the Company's IPO in 2006 and the Board is grateful to him for his dedication to the Company over many years.

Following the announcement of Roger's intention to retire, the Board set about finding a strong, independent non-executive director and was delighted to welcome Hilary Stewart-Jones on 10 October 2013. Hilary is a leading international expert in gambling law and has over 15 years' experience advising companies on gambling related issues.

Playtech continues to be the clear market leader in the provision of software and services to the global online gaming industry. The Company's success is a testimony to the commitment and hard work of both the executive management team and everyone working for the Company, and I thank them all for another excellent performance.

In conclusion, after yet another strong year, the Board believes there are significant opportunities ahead for Playtech to continue to grow and use the strength of its balance sheet to drive the business. We remain confident of the Company's future prospects and look forward to further progress in 2014 and beyond."

- Ends -

For further information contact:

Playtech plc Mor Weizer, Chief Executive Officer Ron Hoffman, Chief Financial Officer c/o Bell Pottinger Adam Kay, Head of Investor Relations	[phone] [phone]
Bell Pottinger David Rydell / Olly Scott / Guy Scarborough	[phone]

Forward looking statements

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect Playtech's view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, Playtech undertakes no obligation to publicly revise any forward-looking statements in this announcement following any change in its expectations or to reflect events or circumstances after the date of this announcement.

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, CRM services and hosting.

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 is listed on the London Stock Exchange and has over 3,400 employees located in twelve countries. Its leading gaming applications include casino, bingo, poker, sports betting, live, mobile and social gaming, casual and fixed odds games.

www.playtech.com 

 

END

 

 

AGMDBLFLZEFBBBX