1st Quarter Results

RNS Number : 3280L

Playtech Limited

05 May 2010

 



Playtech Limited

('Playtech' or the 'Company')

Q1 2010 Key Performance Indicators and trading update

STRONG START TO 2010 WITH POSITIVE MOMENTUM INTO SECOND QUARTER

Playtech, (AIM: PTEC) the international designer, developer and licensor of software for the online, mobile and land-based gaming industry, today announces its Key Performance Indicators and trading update for the three months ending 31 March 2010.

Financial highlights

§ Gross income for the quarter totalled €43.4 million, up 29% on Q1/09 and 13% ahead of Q4/09

§ Total revenues up 25% on Q1/09 and 19% on Q4/09 to €36.1 million. Total revenues excluding Virtue Fusion up 9% on Q4/09 

§ Product revenues:

§ Casino revenues up 27% on Q1/09 to €24.2 million, 17% higher than Q4/09

§ Poker revenues down 4% on Q1/09 to €8.5 million but 2% higher than Q4/09

§ Bingo revenues totalled €1.7 million, reflecting the first contribution from February's acquisition of Virtue Fusion, which also contributed revenue to Casino and Other revenues

§ Share of profit in William Hill Online of €7.4 million, up 49% on Q1/09 but down 9% on what was a very strong Q4/09

§ Adjusted Group EBITDA for the three months ended 31 March 2010 expected to be not less than €26.5 million

§ Net cash at 31 March 2010 of €55 million, after partial acquisition consideration paid in the quarter, but before payment of full year dividend of approximately €22.7 million

Trading update

Daily average royalty revenues in April are running slightly ahead of those experienced during Q1/10 suggesting an encouraging start to what is normally considered to be a quieter quarter. We continue to see strong interest in our products and a good pipeline of prospective licensees in regulated and soon-to-be-regulated markets.

Operational highlights

§ Playtech's new Italian bingo network launched with its first licensee, immediately recording encouraging levels of activity; additional licensees are expected to launch in the coming quarters. Well positioned for launch of both poker cash tables and casino later in the year

§ Good progress made by both recent acquisitions, GTS and Virtue Fusion: adding new licensees of Virgin Games and Boyle Sports respectively

§ GTS: fully integrated into IMS, launched both Gladiator and suite of casino games on platform in advance of the World Cup

§ Videobet: Global Draw roll-out progressing well and according to plan

§ Sciplay JV: Established and operationally ready; making good progress with a number of introductions to lotteries globally

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

"We have had a very good start the year. Our final numbers for Q1 2010 reflect substantial revenue growth and build on the strong progress made in the last three months of 2009. Encouragingly we have also seen continued momentum going into the traditionally slower second quarter. Our two recent acquisitions have integrated well and are making excellent progress. I believe Playtech remains well positioned to add licensees in a number of newly regulating markets and can look to the rest of 2010 with confidence."

Q1 2010 Key Performance Indicators

Gross income
Three months ended '000 (€)	31- Mar-10	31-Mar-09	Change %	31-Dec-09	Change %
Gross Income	43,431	33,794	29%	38,509	13%
Total Revenue	36,059	28,836	25%	30,424	19%
WHO Share of profit	7,372	4,958	49%	8,085	-9%
Total revenue
Three months ended '000 (€)	31- Mar-10	31-Mar-09	Change %	31-Dec-09	Change %
Total revenue	36,059	28,836	25%	30,424	19%
Casino revenue	24,197	19,035	27%	20,663	17%
Poker revenue	8,523	8,876	-4%	8,382	2%
Bingo revenue	1,712	28	n/a	69	n/a

Revenue - Share of Geographical Diversity [1]
Three months ended	31-Mar-10	31-Mar-09	31-Dec-09
Europe	63%	63%	64%
Asia Pacific	30%	31%	28%
Rest of the World	7%	6%	8%

Revenue - Nominal Change in Geographical Regions
Period	Q1/10 to Q1/09	Q1/10 to Q4/09
Europe	+33%	+20%
Asia Pacific	+30%	+25%
Rest of the World	+60%	+8%

[1] The relative share is calculated as gross income generated from players in a specific region as a percentage of the global total.

There will be a conference call for analysts at 11.00 am hosted by Mor Weizer and Shuki Barak. Dial-in details are as follows:

Dial-in no UK:                + 44 (0)20 7906 8567

Dial-in no US:                [phone]

Conference title: Playtech trading update

Replay (available for one week):

Dial-In No:                     [phone]           

Reference number:         265562#             

- Ends -

For further information contact:

Playtech Ltd Mor Weizer, Chief Executive Shuki Barak, Chief Financial Officer Ross Hawley, Head of Investor Relations c/o Pelham Bell Pottinger	[phone]
Collins Stewart Piers Coombs / Bruce Garrow	[phone]
Deutsche Bank Mumtaz Naseem	[phone]
Pelham Bell Pottinger David Rydell / Olly Scott / Samantha Boston	[phone]

About Playtech

Playtech develops unified software platforms and content for the remote and land-based gaming industry. 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 system's fully integrated, cross-platform capability enables players to access 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 the newly regulated markets.

Founded in 1999, Playtech is headquartered in the Isle of Man and has over 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.

www.playtech.com

 

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