Trading Statement
Playtech Limited
25 July 2007
Playtech Limited
('Playtech' or 'the Company')
Second Quarter Trading Update
Playtech (AIM: PTEC), the international designer, developer and licensor of
software for the online and land-based gaming industry, announces today its
trading update for the second quarter and the first half of 2007.
Financial Highlights
(All 2006 revenues exclude contributions from the US unless otherwise stated)
• Total revenues for the quarter were $24.2 million representing an
increase of 22% on the $19.8 million achieved in Q1 2007 and an increase of
76% on the $13.8 million in Q2 2006:
- Casino revenues totalled $17.4 million, an increase of 15% from
$15.2 million in Q1 2007 and an increase of 46% from $11.9 million in
Q2 2006;
- Poker revenues totalled $6.3 million, an increase of 50% from
$4.2 million in Q1 2007 and an increase of 288% from $1.6 million in
Q2 2006.
• Total revenues for H1 2007 were $44.0 million representing an increase
of 80% compared to H1 2006:
- Casino revenues increased by 53% compared to H1 2006 to $32.6 million;
- Poker revenues increased by 275% compared to H1 2006 to $10.5 million.
• Total revenues in Q2 2007 decreased by 5% from the $25.4 million in Q2
2006 (including contribution from the US):
- Casino revenues decreased by 21% from $22.2 million in Q2 2006;
- Poker revenues increased by 132% from $2.7 million in Q2 2006.
Licensees
In the first six months of 2007, Playtech has gained a total of 12 new
licensees, eight of which are Tribeca migrated licensees now successfully
operating on Playtech's poker network, and which have contributed fully to the
Q2 revenues. In addition, Playtech entered into four additional licence
agreements, one for the casino product, one for the poker product, one taking
all current products available and the other catering to the Chinese market by
offering Playtech's p2p tournament product.
Bingo and Casino Products
Playtech's Bulgarian subsidiary continues to develop the bingo product. In May
2007, Playtech launched a new version of bingo which significantly improved the
player experience whilst upgrading the bingo engine and the back office tools.
In July 2007, Playtech introduced a flash version of bingo, which was launched
with three of its licensees. It is intended that this product will be fully
deployed with all bingo licensees in Q4 2007.
Playtech continues to increase the range of games it offers to licensees, both
through internal development and by licensing content from third party IP rights
holders.
Geographical Analysis
The Tribeca migrated licensees are focused on the European market, which has
resulted in strong European revenue growth in the second quarter. The Asian
market has been stable during the second quarter. The restructuring of one of
the Company's Asian licensees, as previously stated in the Q1 KPI announcement,
is now mostly completed.
Current Trading
Playtech concluded a very positive first half of 2007. The Group's leading
position in both the casino and poker software industry continues to attract new
licensees and this trend is expected to continue in the second half of the year.
In addition, the Company's existing licensees are experiencing continued growth,
which is being bolstered by the cross selling benefits available via Playtech's
platform.
Since the beginning of Q3, the Group is experiencing growth across all business
areas and this trend is expected to continue, despite such quarter traditionally
being a slow period for the online gaming industry. The Group also aims to
further diversify its revenue stream through the introduction of its new
products by the end of the year.
Mor Weizer, Chief Executive Officer, commenting on the results, said today:
'The first six months has been an outstanding period for the Group, with the
addition of 12 new licensees and growth experienced across all business areas.
During the first half of 2007, Playtech gained a leading position with its poker
offering and is now the world's largest independent poker network. Such a
position, alongside the Company's market leading casino offering will continue
to attract new licensees in the second half of 2007. The Group continues to
invest in its new product pipeline in order to gain additional revenue streams
and to maximise cross selling opportunities to its existing and future
licensees.'
Second Quarter Key Performance Indicators at 30 June 2007
Revenues - excluding contributions from the US
Three months ended 30 June 30 June Change 31 March Change
'000 ($) 2007 2006 2007
Total Revenues 24,174 13,772 +76% 19,792 +22%
Casino Revenues 17,430 11,918 +46% 15,215 +15%
Poker Revenues 6,315 1,626 +288% 4,221 +50%
Revenues - Actual numbers
Three months ended 30 June 30 June Change 31 March Change
'000 ($) 2007 2006 2007
Total Revenues 24,174 25,411 -5% 19,792 +22%
Casino Revenues 17,430 22,141 -21% 15,215 +15%
Poker Revenues 6,315 2,723 +132% 4,221 +50%
Geographical Diversity (excluding US)
Relative Share of Geographical Diversity(1)
Three months ended 30 June 30 June 31 March
2007 2006 2007
Europe 71% 50% 65%
Asia Pacific 20% 38% 24%
Rest of the World 9% 12% 11%
Nominal Change in Geographical Regions
Period Q2 2006 to Q2 Q1 2007 to Q2
2007 2007
Europe +61% +33%
Asia Pacific -20% 0%
Rest of the World +9% +3%
First Half Key Performance Indicators at 30 June 2007
Revenues - excluding contributions from the US
Six months ended 30 June 2007 30 June Change
'000 ($) 2006
Total Revenues 43,966 24,474 +80%
Casino Revenues 32,645 21,286 +53%
Poker Revenues 10,536 2,808 +275%
Revenues - Actual numbers
Six months ended 30 June 2007 30 June Change
'000 ($) 2006
Total Revenues 43,966 46,178 -5%
Casino Revenues 32,645 40,387 -19%
Poker Revenues 10,536 4,813 +119%
Geographical Diversity (excluding US)
Relative Share of Geographical Diversity(1)
Six months ended June 30 June 30
2007 2006
Europe 68% 49%
Asia Pacific 22% 39%
Rest of the World 10% 12%
Nominal Change in Geographical Regions
Period H1 2006 to H1
2007
Europe +113%
Asia Pacific -15%
Rest of the World +28%
(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 -
Analyst Conference Call
An analyst conference call has been organised for 9:30 am GMT today hosted by
the Chief Executive Officer, Mor Weizer.
Dial-in number: +44 207 190 1596
Conference call title: Playtech KPI's 27.07.07
For Further Information:
Mor Weizer, CEO, Playtech Ltd
c/o Bell Pottinger Tel: 020 7861 3232
www.playtech.com
David Rydell / Peter Otero
Bell Pottinger Corporate & Financial Tel. 020 7861 3232
This information is provided by RNS
The company news service from the London Stock Exchange