Playtech H1s: EBITDA up a third; poker surging
Playtech's earning before interest tax depreciation and amortisation (EBITDA) have risen by a third, the software provider's half-year results confirmed this morning.
PLAYTECH’S EARNINGS before interest tax depreciation and amortisation (EBITDA) have risen by a third, the software provider’s half-year results confirmed this morning.
Adjusted EBITDA for the first half of the year was 45.3m, an increase of 33% on the 34m Playtech recorded at the same point in 2008.
A surge in poker revenues of 24%, to 17.3m, balanced marginal growth in casino, which rose 2% to 37.6m, resulting in total revenue up 10% to hit 56.7m.
Playtech chief executive Mor Weizer said: “The first half of 2009 has seen Playtech’s licensees operating in a challenging macro-economic environment, yet total revenues have increased by 10%. The underlying performance of Playtech’s core royalty business continues to be resilient. I remain confident that our industry leading products and services, diversified licensee base and strong reputation, will mean that Playtech continues to perform strongly.”
The adjusted EBITDA margin of 80%, up from 66% in 2008, was largely due to the impact of the share income agreement in place with William Hill Online.
Adjusted net profit was up by 19% to 43m, compared with 36.2m in 2008. The adjusted EBITDA and adjusted net profit were calculated after adding back certain items in relation to the investments in William Hill Online, Tribeca, the CY Foundation Group Limited, AsianLogic, and the exchange loss relating to the investment in William Hill Online, which are not part of the group’s core business, and the employee stock option plan.
Gross income, defined as revenue plus the company’s share of income from William Hill Online before non-cash amortization of intangibles, rose 30%, to 66.9m, from 51.6m at the same point in 2008.
The company had 48.7m cash at 30 June 2009.
Highlights during the period include licensee developments such as Playtech’s deals with Betfair and NetPlay TV, as well as launch of Playtech’s Italian poker network. Playtech also signed a tie with the Serbian State Lottery, and today signed a deal with Olympic Entertainment Group, a gaming operator in the Baltic states and eastern Europe.
As reported on EGRmagazine.com, Playtech issued a profits warning in July after delays in the integration of Playtech technology into the WHO venture in which Playtech has a 29% stake and lower than expected trading meant full year earnings before interest, tax, debt and amortisation forecasts for the company were revised down from 124m to 96m by analysts.