Q3 KPI and trading update

RNS Number : 4182V

Playtech Limited

02 November 2010

 



Playtech Limited

 

('Playtech' or the ‘Company')

 

Q3 2010 Key Performance Indicators and trading update

 

Improving current trading as entering seasonally stronger period

 

 

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 30 September 2010.

 

 

Financial highlights

 

§         Gross income for the quarter up 30% to €41.3 million (Q3/09: €31.9 million)

§         Total revenues up 17% to €32.5 million (Q3/09: €27.7 million)

§         For the nine months to 30 September 2010, gross income up 31% to €129.2 million (2009: €98.8 million) and total revenues up 25% to €105.4 million (2009: €84.4 million)

§         Excluding impact of France closure: gross income vs Q2/10 was up 1%, total revenues down 2%

§         On absolute basis, gross income down 7%, total revenues 12% below Q2/10

                                                                                                                                            

§         Product revenues:

§         Casino revenues up 17% to €21.7 million (Q3/09: €18.5 million) and down 13% on Q2/10

§         Poker revenues down 30% to €5.7 million (Q3/09: €8.2 million) and 21% lower than Q2/10

§         Bingo revenues totalled €3.1 million, up 11% on Q2/10, reflecting strong growth from Virtue Fusion, reinforced by the new Italian bingo network

§         Excluding impact of France closure, casino revenues are down Q3 vs Q2 by 2% and poker revenues down 13%

 

§         Share of profit in William Hill Online up 111% to €8.8 million (Q3/09: €4.2 million), up 15% from Q2/10

§         EBITDA for the nine months to 30 September 2010 expected to be not less than €77.7 million

Trading update

Daily activity for the first 31 days of Q4/10 is more than 25% ahead of Q4/09 on a like for like basis (excluding France) and more than 12% ahead of Q4/09 on an absolute basis. Activity in Q4/10 is over 7% above the daily average of the previous quarter.

Operational highlights

 

§         Betfair casino performing strongly since launch of web-based format at the end of August

§         Final launch preparations for Finnish monopoly, RAY, underway with launch in Q4

§         French poker network launched at the end of June. Further licensees signed up and ready to launch in Q4 and beyond. Additional licensees in the process of obtaining regulatory approval

§         Italian Bingo network growing well ahead of market, achieving market share in excess of 25% in September with additional licensees commencing in Q4

§         Strong growth in Virtue Fusion bingo network, notable potential to expand European profile

§         Videobet’s Global Draw migration project progressing well; Ladbrokes gaming machine contract won by Global Draw in August will be deployed with Videobet platform early next year

§         Playtech’s strategic partner, Sportech plc, cleared as a gaming operator in New Jersey, Maine and Connecticut following detailed regulatory process

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

"Gross income and total revenues for the quarter held up well over the traditionally quiet summer period, especially when excluding the impact of the closure of the French offshore market, which distorts the historic comparisons. After the seasonal slowdown and the aftermath of the World Cup, September as expected was a stronger month, and we see this positive trend continuing."

"The recent launches of Betfair casino and our Italian Bingo licensees have performed very well from soon after launch, and will be joined by RAY in the coming months. I am also encouraged by discussions with a number of notable operators which should deliver a strong pipeline across the product range. We are making progress with workstreams focused on the move to the main list and the appointment of a new CFO."

"We are encouraged by current trading and remain confident that the Company will meet its expectations for 2010."

Mor Weizer, Chief Executive Officer, and Shuki Barak, Interim Chief Financial Officer, will host an analyst conference call at 11.00 am on Tuesday 2 November 2010.

Details of the conference call are as follows:

Dial-in no UK: Dial-in no US: Conference ID:	[phone] [phone] 4369460
Replay (available for one week) Dial-in no: Conference reference number:	[phone] 4369460#

Key Performance Indicators for the three months ending 30 September 2010

Gross income
Three months ended '000 (€)	30- Sep-10	30-Sep-09	Change %	30-Jun-10	Change %
Gross Income	41,285	31,860	30	44,474	-7
Total Revenue	32,513	27,697	17	36,833	-12
WHO Share of profit	8,772	4,163	111	7,641	15

Total revenue
Three months ended '000 (€)	30-Sep-10	30-Sep-09	Change %	30-Jun-10	Change %
Total revenue	32,513	27,697	17	36,833	-12
Casino revenue	21,673	18,521	17	24,913	-13
Poker revenue	5,732	8,167	-30	7,275	-21
Bingo revenue	3,057	75	n/a	2,755	11

Revenue - Share of Geographical Diversity1
Three months ended	30-Sep-10	30-Sep-09	30-Jun-10
Europe	58%	63%	63%
Asia Pacific	37%	31%	30%
Rest of the World	5%	6%	7%

Revenue - Nominal Change in Geographical Regions1
Period	Q3/10 to Q3/09	Q3/10 to Q2/10
Europe	10%	-19%
Asia Pacific	46%	13%
Rest of the World	-11%	-37%

First nine months Key Performance Indicators at 30 September 2010 

Gross income
Nine months ended '000 (€)	30-Sep-10	30-Sep-09	Change %
Gross Income	129,190	98,800	31
Total Revenue	105,405	84,351	25
WHO Share of profit	23,785	14,449	65

Total revenue
Nine months ended '000 (€)	30-Sep-10	30-Sep-09	Change %
Total revenue	105,405	84,351	25
Casino revenue	70,783	56,094	26
Poker revenue	21,530	25,431	-15
Bingo revenue	7,524	166	na

Revenue - Share of Geographical Diversity1
Nine months ended	30-Sep-10	30-Sep-09
Europe	62%	63%
Asia Pacific	32%	31%
Rest of the World	6%	6%

Revenue - Nominal Change in Geographical Regions1
Period	9M/10 to 9M/09
Europe	27%
Asia Pacific	34%
Rest of the World	37%

[1] The relative share is calculated as the total players' income derived from the specific region divided by the total players' income from all regions

- Ends -

For further information contact:

Playtech Ltd Mor Weizer, Chief Executive Shuki Barak, Chief Financial Officer Ross Hawley, Director of Investor Relations c/o Pelham Bell Pottinger	[phone]
Collins Stewart Piers Coombs / Bruce Garrow	[phone]
Deutsche Bank Mumtaz Naseem / 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 companies 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 full time 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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