Playtech first quarter: 25% revenue surge
Playtech's revenue is up 25% on the same period last year, with the software supplier's strong first quarter results and prospects in regulated markets winning over City analysts.
PLAYTECH’s revenue is up 25% on the same period last year, the software supplier’s first quarter results reveal.
The AIM-listed company reported Q1 revenue of 36.1m ($46.9m, £30.9m) today, representing year-on-year (YoY) growth of 25%.
This was driven chiefly by its casino product, which grew 27% YoY to 24.2m, while poker, by contrast, fell 4% YoY to 8.5m.
Playtech also indicated that its first quarter earnings before interest tax depreciation and amortisation (EBITDA) will be more than 26.5m ($34.3m, £22.7m).
The business’ profit from its share of William Hill Online was up almost half to 7.4m, an increase of 49% YoY, and the company also saw the first contribution from Playtech’s February acquisition of UK bingo business Virtue Fusion, with bingo revenue totalling 1.7m and Virtue Fusion also contributing to casino and other revenue streams.
Operational highlights included the formation of Playtech’s SciPlay joint-venture with US lottery giant Scientific Games in January to deliver online technology to government-backed lotteries; Boyle Sports signing Virtue Fusion for bingo and the launch of Playtech’s new Italian bingo network.
Chief executive Mor Weizer (pictured) said: “Our final numbers for Q1 2010 reflect substantial revenue growth and build on the strong progress made in the last three months of 2009. Our two recent acquisitions [Virtue Fusion and Gaming Technology Solutions] have integrated well [and] 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.”
The figures were greeted positively by analysts. James Hollins of Daniel Stewart said: “Given the strong Q1 and current trading, supported by expected licensee wins to come in key regulating markets (notably France) and acquisitions integrated and progressing well, we retain our 625p price target and Key Buy recommendation.”
Paul Leyland of Collins Stewart said: “Given Playtech’s attractive growth profile, increasing regulated market exposure and ‘arms length’ off shore risk as a software provider, the stock continues to be our preferred online gambling play.”