Q3 2011 KPIs and trading update

RNS Number : 7413R

Playtech Limited

09 November 2011

 



 Playtech Limited

('Playtech' or the 'Company')

Q3 2011 Key Performance Indicators and trading update

Strong performance through summer season; confidence for full year

 Playtech, (AIM: PTEC) the international designer, developer and licensor of software and services for the online, mobile and land-based gaming industry, today announces its Key Performance Indicators and trading update for the three months ending 30 September 2011.

Financial highlights

For the three months ending 30 September 2011:

§ Gross income totalled €70.1 million, (Q3/10: €41.3 million)

§ Total revenues totalled €61.5 million, (Q3/10: €32.5 million)

Excluding new services division*:

§ Gross income up 23% on Q3/10 and 5% above Q2/11 to €50.6 million

§ Total revenues up 30% on Q3/10 and 7% above Q2/11 to €42.0 million

Product revenues:

§ Casino revenues up 34% to €28.9 million, (Q3/10: €21.7 million) and up 6% on Q2/11

§ Poker revenues down 2% to €5.6 million, (Q3/10: €5.7 million) but up 13% on Q2/11

§ Bingo revenues up 24% to €3.8 million, (Q3/10: €3.1 million) and up 5% on Q2/11

§ Videobet revenues totalled €2.2 million, (Q3/10: €0.5 million) and up 6% on Q2/11

§ Services division provides revenue contribution of €19.5 million for the quarter*

§ Share of profit in William Hill Online down 2% to €8.6 million, (Q3/10: €8.8 million) down 3% from Q2/11

For the nine months ending 30 September 2011:

§ Gross income up 28% to €165.2 million, (2010: €129.2 million)

§ Total revenues up 31% €137.9 million, (2010: €105.4 million)

Excluding services division and impact of France closure:

§ Gross income up 20% to €145.3 million

§ Total revenues up 22% to €118.0 million

*Services division comprises revenues generated by PTTS, acquired on 1 July 2011, together with some non-material reclassification of services revenues from within 'Other Revenues'.

Trading update

Daily activity for the first 31 days of Q4/11 is 20% ahead of Q4/10 for software royalties and 5% ahead of the average for Q3/11. Services revenues are slightly ahead of Q3/11 and the business is performing in line with expectations.

Operational highlights

§ PTTS acquisition completed on 1 July 2011 and the business is performing in line with management's expectations and various opportunities are being explored in regulated markets

§ Successful launch of eight casino and cash poker licensees on to the Italian network after enabling regulations in July

§ August acquisition of the mobile gaming enabler Mobenga, delivering a market-leading mobile platform, launched products for licensees in Q3/11 including William Hill, Skybet, Sportsbet and IASbet

§ Paddy Power casino successfully migrated to Playtech at end of Q3, joining its existing poker and bingo products

§ Preparation for launch of COPA play for fun in California; 'CalShark' site successfully launched in early Q4

§ Bingo team completed migration of Italian network and integration of GTS games platform

§ Project to migrate Gala Coral's gaming product suite to Playtech progressing well

Commenting on the KPI's, Playtech's Chief Executive, Mor Weizer, said:

"Playtech's diverse revenue streams have delivered a strong performance over the traditionally quieter third quarter thanks to the launch of Italian cash poker and casino products, improvements in poker revenues following the change in the market structure after the suspension of one of the largest poker operators, and the continued strength of bingo and Videobet, where the UK roll-out has now completed."

"PTTS has been integrated exactly as planned and is performing well and primed to add significant value as we deliver new turnkey projects and JVs."

"New product launches have performed well and we are in discussions with a number of significant gaming businesses looking to utilise Playtech's market leading technology and services. The Company is also in discussions with potential joint venture partners in different regulated markets."

"Despite continued regulatory uncertainty in certain European markets, these results demonstrate the strength of Playtech's business giving us confidence for the full year. Playtech is positioned to establish itself as a leading supplier and a JV partner in different regulated jurisdictions and discussions are underway in regulated and soon to be regulated markets."

Key Performance Indicators for the quarter ending 30 September 2011

Gross income

Three months ended '000 (€)	30 Sep 11	30 Sep 10	Change %	30 Jun 11	Change %
Gross income	70,117	41,285	70%	48,431	45%
Total revenue	61,544	32,513	89%	39,591	55%
WHO share of profit	8,573	8,772	-2%	8,840	-3%

Total revenue

Three months ended '000 (€)	30 Sep 11	30 Sep 10	Change %	30 Jun 11	Change %
Total revenue	61,544	32,513	89%	39,591	55%
Casino revenue	28,936	21,673	34%	27,254	6%
Poker revenue	5,629	5,732	-2%	4,977	13%
Bingo revenue	3,805	3,057	24%	3,641	5%
Services revenue	19,545	173	N/A	258	N/A
Videobet revenue	2,172	514	323%	2,047	6%

Nine months ended '000 (€)	30 Sep 11	30 Sep 10	Change %
Gross Income	165,165	129,190	28%
Total Revenue	137,873	105,405	31%
WHO Share of profit	27,292	23,785	15%

Total revenue

Nine months ended '000 (€)	30 Sep 11	30 Sep 10	Change %
Total revenue	137,873	105,405	31%
Casino revenue	81,632	70,783	15%
Poker revenue	16,285	21,530	-24%
Bingo revenue	10,921	7,524	45%
Services revenue	19,880	415	4690%
Videobet revenue	5,108	1,855	175%

Revenue - share of geographical diversity [1]

Three months ended	30 Sep 11	30 Sep 10	30 Jun 11
Europe	74 %	75%	73%
Asia Pacific	20%	18%	22%
Rest of the world	6%	7%	5%

Revenue - nominal change in geographical regions

Period	Q3/11 to Q3/10	Q3/11 to Q2/11
Europe	88%	58%
Asia Pacific	102%	36%
Rest of the world	75%	107%

Nine months ended	YTD 2011	YTD 2010
Europe	74%	77%
Asia Pacific	21%	16%
Rest of the world	5%	7%

Revenue - nominal change in geographical regions

Period	YTD 2011 to YTD 2010
Europe	25%
Asia Pacific	70%
Rest of the world	1%

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

Mor Weizer, Chief Executive Officer, and David Mathewson, Chief Financial Officer, will host an analyst conference call at 11.00 am on Wednesday 9 November 2011.

Details of the conference call are as follows:

Dial-in no UK: [phone]

Dial-in no US: [phone]

Conference ID: 4480427

Replay (available for one week)

Dial-in no: [phone]:

Conference reference number: 4480427#

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 c/o Pelham Bell Pottinger Ross Hawley, Director of Investor Relations	[phone] [phone]
Collins Stewart Piers Coombs / Bruce Garrow	[phone]
Deutsche Bank Andrew Smith	[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 1,000 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 900 employees providing ancillary services

www.playtech.com

 

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