Playtech Posts High Performance In Fy 2012 Results


14th March, 2013 at 04:16:11

It's been a busy year for online gambling software provider and marketer

Playtech plc posted a strong set of full year 2012 results Thursday, showcasing a busy year with a number of significant industry deals.

The company's report on its year ended 31 December 2012 includes these highlights:

- Gross income up by 51% to Euro 368.1 million (2011: Euro 243.6 million)

- Total revenues up by 53% to Euro 317.5 million (2011: Euro 207.5 million)

- Adjusted EBITDA up by 49% to Euro 186.7 million (2011: Euro 124.9 million)

- Adjusted net profit up by 49% to Euro 168.5 million (2011: Euro 112.8 million)

- Adjusted basic EPS up by 26% to 58.1 Euro cents per share (2011: 46.2 Euro cents per share)

- Cash balances at year end of Euro 120.9 million (2011: Euro 164.8 million), net cash at year end of Euro 51.7 million (2011: Euro 137.3 million)

- Recommended final dividend of 15.4 Euro cents per share, giving a total 2012 dividend of 23.2 Euro cents per share (2011: 16.5 Euro cents per share), up 41 percent.

Trading update:

Management reports that Playtech has made a strong start to 2013, with average daily revenues for the first 11 weeks of 2013 up over 15% on Q1 2012 and up 5% on Q4 2012

Operational highlights:

- Playtech entered the FTSE 250 in September after achieving a Main Market listing in July

- The company signed agreements with major operators for new products, including: Paddy Power, Gala Coral, Betclic Everest, Betfair, Betfred, Caliente and

- Gala Coral project has been successfully completed, including Gala Casino, Gala Bingo and mobile sports betting, all powered by Playtech's integrated management system - IMS

- Playtech first to introduce slot games in Italy following new regulation in Q4 2012

- Betclic and Everest poker products launched on the and networks

- Betfair commenced migration onto the iPoker network with completion planned for July 2013

- Playtech launches its unique mobile hub combining mobile sports betting and gaming products with a variety of licensees

- Betfred and Paddy Power launched mobile casino initially including a selection of 20 table and slot games, marking the first step towards a full mobile offering planned to launch later in 2013

- Playtech launched first two sports betting licensees following the acquisition of Geneity in Q1 2012

Post year end events:

- Playtech's joint venture with Gauselmann, signed in January 2012, was awarded two licenses by Schleswig-Holstein for online casino and sports betting

- Valuation of 29% stake in William Hill Online agreed for approximately 424 million. Cash-on-cash return of more than 3.5 times, excluding software royalties. Payment expected by the end of April 2013, following completion.

- The company has signed a landmark software and advisory services agreement with Ladbrokes, which will see the UK gambling group eventually migrate its online poker activities to the iPoker network, and a close collaboration on Ladbrokes Digital marketing

Mor Weizer, the chief executive of the company, said that during 2012, Playtech had expanded its product offering both organically and through acquisitions, secured 19 new licensees including major operators such as Gala Coral and Betclic Everest, further extended its relationships with existing licensees, and entered into significant new joint venture opportunities.

"The company has the operational capacity to stimulate future growth, specifically in mobile gaming, which enjoyed a triple digit percentage performance increase," Weizer said.

"In order to maintain its high level of customer service, Playtech invested in new product development related to the mobile hub, IMS and player portal, enabling operators to create a bespoke player experience, and grew its employee base by 62% to support the business and its customers."

Online casino, Playtech's flagship product, delivered another outstanding performance in 2012. Revenues increased 33% from a combination of organic growth, the addition of new licensees, expansion of the games portfolio, now including all Ash Gaming product, growth from mobile and the revamped live dealer offering, which is now available through all interactive channels, including mobile. The majority of UK bookmakers now feature on the Playtech casinos list with the games complementing their online product suite.

Branded games proved to be a valuable marketing tool for Playtech, and the company boasts it has the largest portfolio of games available across multiple delivery channels including online, mobile, TV and gaming terminals. During 2012, Playtech launched 35 games and 21 branded games.

The growth of mobile continues to outperform all other product channels at Playtech (ref: AZOC's list of mobile casinos currently available) . The success by different operators has led to significant investments by the company. Following the acquisition of Mobenga, the company initiated an innovative internal programme, called the mobile hub, converging mobile sports betting and mobile gaming products into one offering.

Enabled by mobile touch screen functionality, the new mobile hub offers the same products that are available through other interactive channels and shares the same liquidity poker and bingo pools and jackpots. It also creates for the first time the ability to acquire players through the sports betting vertical and then offer other verticals within the same application, maximising the return on invested marketing.

Playtech's experience so far is that mobile presents an incremental opportunity as revenues, margins and activity levels are higher compared with other interactive channels. Mobile remains a key focus for the company and development continues of the next generation of the mobile offering.

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