Interim Management Statement

RNS Number : 3231X

Playtech Limited

07 February 2013

 



Playtech Limited

("Playtech" or the "Company")

Interim Management Statement

Strong quarterly performance underpins record breaking year and provides solid
platform for 2013

Playtech, (LSE: PTEC) 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 ("Fourth Quarter", "Q4" or the "Period") and a trading update ahead of announcing its full year results on 14 March 2013.

Financial highlights

Fourth Quarter:

§ 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

Trading update

Average daily revenue for the first 36 days of 2013 is up over 9% on Q1/12 and flat on Q4/12.

Operational highlights

§ 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."

Performance for the quarter and year ended 31 December 2012

Gross income

Three months ended '000 (€)	31 Dec 12	31 Dec 11	Change %	30 Sep 12	Change %
Gross income	98,839	78,393	26%	92,739	7%
Total revenue	83,853	69,612	20%	79,892	5%
WHO share of profit	14,986	8,781	71%	12,847	17%

Total revenue

Three months ended '000 (€)	31 Dec 12	31 Dec 11	Change %	30 Sep 12	Change %
Total revenue	83,853	69,612	20%	79,892	5%
Casino revenue	41,705	32,753	27%	38,538	8%
Services revenue	26,964	23,132	17%	26,910	0%
Bingo revenue	4,714	4,143	14%	4,448	6%
Poker revenue	4,015	5,508	-27%	4,125	-3%
Videobet revenue	2,689	2,661	1%	2,886	-7%

12 months ended '000 (€)	31 Dec 12	31 Dec 11	Change %
Gross income	368,057	243,558	51%
Total revenue	317,504	207,485	53%
WHO share of profit	50,553	36,073	40%

12 months ended '000 (€)	31 Dec 12	31 Dec 11	Change %
Total revenue	317,504	207,485	53%
Casino revenue	151,745	114,385	33%
Services revenue	106,326	43,012	147%
Bingo revenue	17,954	15,064	19%
Poker revenue	17,840	21,793	-18%
Videobet revenue	10,761	7,769	39%

Revenue - share of geographical diversity

Three months ended	31 Dec 12	31 Dec 11	30 Sep 12
Europe	67%	74%	65%
Asia Pacific	27%	20%	29%
Rest of the world	6%	6%	6%

12 months ended	31 Dec 12	31 Dec 11
Europe	67%	74%
Asia Pacific	26%	20%
Rest of the world	7%	6%

Revenue - nominal change in geographical regions

12 months ended	Q4/12 to Q4/11	Q4/12 to Q3/12	FY 2012 to FY 2011
Europe	9%	8%	40%
Asia Pacific	68%	0%	96%
Rest of the world	13%	0%	72%

Conference call

Mor Weizer, Chief Executive Officer, and Ron Hoffman, Chief Financial Officer, will host an analyst conference call today at 9.30 am.

Details of the conference call are as follows:

Dial-in no UK: [phone]

Dial-in no US: [phone]

Conference ID: 4589855

Replay (available for one week)

Dial-in no: [phone]

Conference reference number: 4589855#

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 Officer Ron Hoffman, Chief Financial Officer c/o Pelham Bell Pottinger Adam Kay, Head of Investor Relations	[phone] [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.

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 2,000 employees located in development centres in five countries. Its leading gaming applications include casino, poker, sports betting, live, mobile and social gaming, casual and fixed odds games.

www.playtech.com

 

END

 

 

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