Q1 2010 Key Performance Indicators and trading update
STRONG START TO 2010 WITH POSITIVE MOMENTUM INTO SECOND QUARTER
Playtech, (AIM: PTEC) the international designer, developer and licensor of software for the online, mobile and land-based gaming industry, today announces its Key Performance Indicators and trading update for the three months ending 31 March 2010.
Financial highlights
- Gross income for the quarter totalled €43.4 million, up 29% on Q1/09 and 13% ahead of Q4/09
- Total revenues up 25% on Q1/09 and 19% on Q4/09 to €36.1 million. Total revenues excluding Virtue Fusion up 9% on Q4/09
- Product revenues:
- Casino revenues up 27% on Q1/09 to €24.2 million, 17% higher than Q4/09
- Poker revenues down 4% on Q1/09 to €8.5 million but 2% higher than Q4/09
- Bingo revenues totalled €1.7 million, reflecting the first contribution from February's acquisition of Virtue Fusion, which also contributed revenue to Casino and Other revenues
- Share of profit in William Hill Online of €7.4 million, up 49% on Q1/09 but down 9% on what was a very strong Q4/09
- Adjusted Group EBITDA for the three months ended 31 March 2010 expected to be not less than €26.5 million
- Net cash at 31 March 2010 of €55 million, after partial acquisition consideration paid in the quarter, but before payment of full year dividend of approximately €22.7 million
Trading update
Daily average royalty revenues in April are running slightly ahead of those experienced during Q1/10 suggesting an encouraging start to what is normally considered to be a quieter quarter. We continue to see strong interest in our products and a good pipeline of prospective licensees in regulated and soon-to-be-regulated markets.
Operational highlights
- Playtech's new Italian bingo network launched with its first licensee, immediately recording encouraging levels of activity; additional licensees are expected to launch in the coming quarters. Well positioned for launch of both poker cash tables and casino later in the year
- Good progress made by both recent acquisitions, GTS and Virtue Fusion: adding new licensees of Virgin Games and Boyle Sports respectively
- GTS: fully integrated into IMS, launched both Gladiator and suite of casino games on platform in advance of the World Cup
- Videobet: Global Draw roll-out progressing well and according to plan
- Sciplay JV: Established and operationally ready; making good progress with a number of introductions to lotteries globally
Commenting on the KPI's, Playtech's Chief Executive, Mor Weizer, said:
"We have had a very good start the year. Our final numbers for Q1 2010 reflect substantial revenue growth and build on the strong progress made in the last three months of 2009. Encouragingly we have also seen continued momentum going into the traditionally slower second quarter. Our two recent acquisitions have integrated well and are making excellent progress. 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."
Q1 2010 Key Performance Indicators
Gross income
| Three months ended '000 (€) | 31- Mar-10 | 31-Mar-09 | Change % | 31-Dec-09 | Change % |
| Gross Income | 43,431 | 33,794 | 29% | 38,509 | 13% |
| Total Revenue | 36,059 | 28,836 | 25% | 30,424 | 19% |
| WHO Share of profit | 7,372 | 4,958 | 49% | 8,085 | -9% |
Total revenue
| Three months ended '000 (€) | 31- Mar-10 | 31-Mar-09 | Change % | 31-Dec-09 | Change % |
| Total revenue | 36,059 | 28,836 | 25% | 30,424 | 19% |
| Casino revenue | 24,197 | 19,035 | 27% | 20,663 | 17% |
| Poker revenue | 8,523 | 8,876 | -4% | 8,382 | 2% |
| Bingo revenue | 1,712 | 28 | n/a | 69 | n/a |
Revenue - Share of Geographical Diversity [1]
| Three months ended | 31-Mar-10 | 31-Mar-09 | 31-Dec-09 |
| Europe | 63% | 63% | 64% |
| Asia Pacific | 30% | 31% | 28% |
| Rest of the World | 7% | 6% | 8% |
The relative share is calculated as gross income generated from players in a specific region as a percentage of the global total.
There will be a conference call for analysts at 11.00 am hosted by Mor Weizer and Shuki Barak. Dial-in details are as follows:
| Dial-in no UK: | + 44 (0)20 7906 8567 |
| Dial-in no US: | +1 703 865 2821 |
| Dial-In No: | +44 (0)20 3364 5943 |
| Reference number: | 265562# |
For further information contact:
| Mor Weizer, CEO, Playtech Ltd Shuki Barak, CFO, Playtech Ltd Ross Hawley, Investor Relations, Playtech Ltd c/o Pelham Bell Pottinger | +44 (0) 20 7861 3232 |
| Piers Coombs / Bruce Garrow Collins Stewart | +44 (0) 20 7523 8000 |
| Mumtaz Naseem Deutsche Bank | +44 (0) 20 7545 8000 |
| David Rydell / Olly Scott / Samantha Boston Pelham Bell Pottinger | +44 (0) 20 7861 3232 |
About Playtech
Playtech develops unified software platforms for the online and land based gambling industry, primarily targeting existing online operators wanting to upgrade their system; sportsbooks looking to diversify and land-based operators making their online debut. Playtech gaming applications - online casino, poker, bingo, mobile gaming, live gaming, land-based kiosk networks and fixed-odds games - are fully inter-compatible and can be freely incorporated as stand-alone applications, accessed and funded by players through the same user account and managed by the operator by means of a single powerful management interface. Founded in 1999, Playtech has over 800 personnel distributed globally, around seventy five percent of whom are engaged in research and development of current and future gaming technologies.
Website: www.playtech.com
