Interim Management Statement

RNS Number : 4937Q

Playtech Limited

07 November 2012

 



Playtech Limited

('Playtech' or the 'Company')

Interim management statement

Revenue growth continues into the third quarter

Playtech, (LSE: PTEC) the international designer, developer, licensor and provider of software and services for the online, mobile and land-based gaming industry, today announces its interim management statement incorporating its third quarter key performance indicators for the three months ending 30 September 2012 (the "period" or "Q3") and a trading update.

Financial highlights

For the period:

§ Gross income up 32% to €92.7 million, (Q3/11: €70.1 million) and up 5% on Q2/12

§ Total revenues up 30% to €79.9 million, (Q3/11: €61.5 million) and up 2% on Q2/12

Quarter-on-quarter revenue performance:

§ Casino revenues up 33% to €38.5 million, (Q3/11: €28.9 million) and up 4% on Q2/12

§ Bingo revenues up 17% to €4.4 million, (Q3/11: €3.8 million) and up 1% on Q2/12

§ Poker revenues down 27% to €4.1 million, (Q3/11: €5.6 million) and down 6% on Q2/12

§ Videobet revenues up 33% to €2.9 million, (Q3/11:  €2.2 million) and up 4% on Q2/12

§ Services revenues up 38% to €26.9 million, (Q3/11: €19.5 million) and up 1% on Q2/12

§ Share of profit in William Hill Online up 50% to €12.8 million, (Q3/11: €8.6 million) and up 36% from Q2/12

Trading update

Daily activity for the first 37 days of Q4/12 is over 17% above the comparable quarter last year, (over 16% after excluding the influence of acquisitions) and 3% above Q3/12.

Operational highlights

§ Gala Coral has completed its migration onto Playtech's platform with the successful launch of Gala Bingo and Coral in July and October respectively

§ In addition, Gala Coral has successfully launched the Playtech mobile sports betting application which is now fully integrated with Playtech Casino

§ Betclic-Everest, the leading French online poker and casino group, launched Betclic and Everest poker products in France and international markets on ipoker.fr and ipoker.com respectively

§ Betfair has renewed its contract for casino, which has now been extended to include bingo as well as  poker and mobile in Spain and Italy

§ A new poker liquidity programme was successfully introduced offering a more balanced environment for our licensees and their players at the end of the third quarter. It is anticipated that the newly restructured network will prove attractive to both new and existing licensees and address weakness in the poker market

§ Mobile bingo applications have been launched on Android for several licensees, enhancing the Company's position as the world's leading supplier of bingo software

§ Launch of the mobile hub, an open framework designed to integrate content and deliver a seamless user experience on mobile devices

§ Playtech portal has been successfully launched, initially with Gala Coral

§ Playtech released 11 new games during the period, including three new branded slot games: Baywatch, Marilyn Monroe and John Wayne

William Hill Online

William Hill Online ("WHO") continued to grow strongly in the period and delivered an increased contribution to the Group. We believe WHO is very well placed to further grow its business in the UK and internationally given its size and financial performance.

As stated by William Hill, it intends to begin the valuation process for WHO as part of its right to exercise its call option over Playtech's 29% stake in the business. Playtech continues to engage in constructive discussions with William Hill regarding the future of the William Hill Online joint venture, one of the most commercially successful partnerships in the history of online gaming.

Regardless of William's Hill's decision on the WHO call option, Playtech remains committed to the success of WHO as a major supplier to WHO and maintaining a close working relationship with William Hill.

In the event that the call option is exercised, Playtech will ensure a smooth handover of its 29% stake to deliver a seamless transition that supports WHO's continued progression.

Playtech's Chief Executive, Mor Weizer, commented:

"Playtech has continued its strong performance into the third quarter, delivering impressive year-on-year growth across the business, in what is usually a seasonally quiet period. Encouraging progress has been made with significant licensee launches, new mobile solutions including the unique mobile hub and mobile bingo application. We anticipate the new poker liquidity programme will improve this part of the business, assisted by further licensee wins.

"PTTS, Mobenga and Ash Gaming continue to perform strongly and we expect the Services division to maintain its upward trajectory as opportunities in regulated and soon-to-be-regulated markets begin to develop.

"William Hill Online has once again exceeded expectations, proving to be a transformational partnership for William Hill and Playtech. Regardless of William Hill's as yet undetermined final decision on the call option we remain committed to our important relationship with William Hill and the continued success of WHO going forward.

"The positive trend experienced in the third quarter has continued into the fourth quarter. Given the expected contribution of new licensees launched, further expected legislation in regulated markets such as Italian slots, the introduction of new products including sports and mobile applications and the advanced discussions the Company has held with various significant licensees, we remain very confident and excited regarding the future prospects for the business for this year and beyond."

Key Performance Indicators for the quarter ending 30 September 2012

Gross income

Three months ended '000 (€)	Q3/12	Q3/11	Change %	Q2/12	Change %
Gross Income	92,739	70,117	32%	88,110	5%
Total Revenue	79,892	61,544	30%	78,643	2%
WHO Share of profit	12,847	8,573	50%	9,467	36%

Revenue

Three months ended '000 (€)	Q3/12	Q3/11	Change %	Q2/12	Change %
Total Revenue	79,892	61,544	30%	78,643	2%
Casino	38,538	28,936	33%	37,050	4%
Poker	4,125	5,629	-27%	4,381	-6%
Bingo	4,448	3,805	17%	4,415	1%
Services	26,910	19,545	38%	26,769	1%
Videobet	2,886	2,172	33%	2,778	4%

Gross income

Nine months ended '000 (€)	30-Sep-12	30-Sep-11	Change %
Gross Income	269,218	165,165	63%
Total Revenue	233,651	137,873	69%
WHO Share of profit	35,567	27,292	30%

Revenue

Nine months ended '000 (€)	30-Sep-12	30-Sep-11	Change %
Total revenue	233,651	137,873	69%
Casino revenue	110,040	81,632	35%
Poker revenue	13,825	16,285	-15%
Bingo revenue	13,240	10,921	21%
Services revenue	79,362	19,880	299%
Videobet revenue	8,072	5,108	58%

Revenue - share of geographical diversity (1)

Three months ended	Q3/12	Q3/11	Q2/12
Europe	65%	74%	69%
Asia Pacific	29%	20%	25%
Rest of the world	6%	6%	6%

Period	YTD 2012	YTD 2011
Europe	68%	74%
Asia Pacific	26%	21%
Rest of the world	6%	5%

Revenue - nominal change in geographical regions

Period	Q3/12 to Q3/11	Q3/12 to Q2/12	YTD 2012 to YTD 2011
Europe	13%	-4%	55%
Asia Pacific	91%	18%	110%
Rest of the world	43%	2%	109%

(1) The relative share is calculated as the total royalties derived from the specific region divided by the total royalties from all regions.

The Company will host an analyst conference call at 9.30 am on Wednesday 7 November 2012.

Details of the conference call are as follows:

Dial-in no UK: [phone]

Dial-in no US: [phone]

Conference ID: 4571065

Replay (available for one week)

Dial-in no: [phone]

Conference reference number: 4571065

An audio file will be also available on the Playtech website following the conference call.

- Ends -

For further information contact:

Playtech Ltd Mor Weizer, Chief Executive David Mathewson, Chief Financial Officer Ron Hoffman, VP of Finance c/o Pelham Bell Pottinger	[phone]
Canaccord Genuity Piers Coombs / Bruce Garrow	[phone]
Pelham Bell Pottinger David Rydell / Olly Scott / Guy Scarborough	[phone]

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, hosting and CRM services.

Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games. Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface - the IMS. 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 has some 1200 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies, together with 1,100 employees providing ancillary services

www.playtech.com

 

END

 

 

IMSLLFSALALRIIF