Playtech 2009 results: Profit leap delights investors
Software provider credits William Hill Online JV and new products as it unveils a 25% year-on-year rise in EBITDA
Playtech has done nothing to dissuade investors, after reporting a 25% jump in earnings before interest, tax, debt and amortisation (EBITDA) and a 71% increase in net profit for the full-year 2009.
The Israel-based egaming software provider announced this week that adjusted EBITDA rose from 74.7m in 2008 to 93.7m ($127.1m, £83.8m) last year. Its performance was ahead of analysts’ expectations. Net profit for the period rose to 69.5m, up from 40.7m.
Gross income was also up 23%, rising from 111.5m in 2008 to 137.3m, aided by the five-year joint venture struck with William Hill Online in late 2008 to provide online poker and casino. That profit-share deal alone contributed 22.5m, before amortisation and intangibles.
Acting on its strong position, the company has been in acquisitive mood recently. Over the past few months, it has completed a succession of deals, with Gaming Technology Solutions (GTS) in December, Scientific Games / Sportech in January, and Virtue Fusion last month, to give itself strong positions in casino, lotteries and bingo respectively.
Chief executive Mor Weizer (pictured) said: “I believe this performance demonstrates both the robustness of the business model and the benefits of being a pure B2B provider.
“The breadth and richness of our portfolio has enabled us in 2009 to attract many new licensees, including those added through acquisition. These licensees were drawn from a wide range of market segments. By these means we increasingly diversify our revenue streams by product, geography and licensee type and this is set to continue as more locally regulated markets open up.”
Commenting on Playtech’s current trading, full-year results and strategy for the year ahead, Daniel Stewart’s James Hollins said the company has good reason to be bullish. “On top of the strategic initiatives, we expect continued solid organic growth across all product verticals, with expected geographic expansion and monetisation of liberalising markets such as Italy.”