AGM Statement

RNS Number : 2287H

Playtech Limited

25 May 2011

 



Playtech Limited

("Playtech" or "the Company")

Annual General Meeting statement

At the Annual General Meeting of Playtech Ltd this morning the Company's Chairman, Roger Withers, will make the following statement:

 "I am delighted to report another year of growth and progress by Playtech. In 2010 gross income rose by 26% to €173.1 million and revenues by 24% to €142.3 million. Adjusted EBITDA rose 10% to €103.1 million, including the Group's share of profit before amortisation from William Hill Online. This was achieved despite the closure of France, our largest continental European market, in the middle of the year.

Given this strong financial performance, the Board, as previously announced, recommended a final dividend payment of 9.6 € cents, resulting in a total 2010 dividend of 19.0 € cents per share. This is in line with our stated dividend policy and indicates the Board's confidence in the continued performance of the business.

Our strategy has focused on positioning Playtech for the many opportunities which we see in newly regulated markets. In 2010 we enhanced our product capabilities through acquisitions such as Virtue Fusion, and strategic alliances such as with Scientific Games. As expected, these investments have started to deliver substantial benefits as new licensees recognise Playtech's market leading capabilities across a broad range of products, distribution channels and geographies.  This has led to a number of important developments in our business.

For example, we are nearing the successful completion of the conversion of over 21,000 FOBT machines to Videobet software in partnership with Global Draw, a subsidiary of Scientific Games.  This gives us the leading position in the UK market and an excellent platform for future growth.

In addition, as stated by Gala Coral, we have recently entered into an MoU to supply it with a technology platform and a broad range of products. Whilst we don't normally comment on MoUs, we are excited by having the chance to partner with another of the UK's leading gaming operators. If a formal agreement is concluded, this new licensee could deliver significant revenues once it migrates onto our platform over the following 12-18 months.   

These deals clearly demonstrate that our strategy and investments are delivering results and there are others in the pipeline. In 2011 we have taken another significant strategic step through the acquisition of PTTS, which is due to complete at the end of June. PTTS enables us to offer a turnkey solution to operators, which we believe will be vital to winning new customers in regulating markets, where new entrants demand a broader range of services from their technology partner.

We continue to consolidate our position as the world's leading B2B provider in online gaming, supported by a growing global reputation, long track record of success and first class strategic partnerships; and we continue to invest in our people and infrastructure to support this. The Board is convinced this is the right strategy that in the longer term will deliver material and high quality revenue streams as more regulated markets develop. 

We have also today announced that the Board has taken authority to make market purchases of its own shares.  The Board has approved this because the Company's directors believe that the recent trading price of the Company's shares does not reflect their underlying value.  We expect the market will recognise the true value of our business, but should the markets continue to offer an opportunity for us to purchase shares at what the Company believes are compelling valuation, we must retain the ability to utilise a portion of our cash resources for the benefit of our long-term shareholders.

As ever, Playtech's continued success could not have been achieved without the commitment of the executive management team and everyone working for the Company, and I thank them for yet another excellent performance in 2010.   

I would also like to congratulate David Mathewson on his appointment as Playtech's new CFO, a position he formally takes up today. David brings longstanding financial markets, public company and sector experience to the executive team; and he has developed a solid understanding of our business. Shuki Barak steps down from the Board after five years, but will continue to play a key role in Playtech's commercial development. The Board and I thank him for his years of notable service and will look to appoint additional NEDs in the coming months.

Turning to current trading conditions, after a solid first quarter, performance has continued to improve and we have experienced positive player activity throughout the first six weeks of the second quarter. This is a good outcome in what remains an uncertain market environment conditions, and continued delay in the introduction of new products in markets such as Italy. 

The potential development of regulatory frameworks in a number of important markets continues to generate uncertainty across the sector, particularly in Europe, as regulators debate the long term shape of their jurisdictions. We also await the true impact of the US DoJ actions against US-facing poker operators but believe changes to regulation and enforcement present significant long term opportunities, despite the short term impact that may occur through the transition period.

In conclusion, after another year of ongoing progress and investment, we believe Playtech has the right strategy, is performing strongly and is well positioned for growth. We remain confident of the Company's future prospects and look forward to further progress in 2011."

- Ends -

For further information contact:

Playtech Ltd Roger Withers, Chairman Mor Weizer, Chief Executive Ross Hawley, Director of Investor Relations c/o Pelham Bell Pottinger	[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 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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