Key Performance Indicators for the Quarter ending 31 March 2009
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 for the first quarter ended 31 March 2009.
The period covered by Q1 2009 is the first operational quarter following completion of the William Hill Online transaction. As previously stated, this has been a transformational transaction for Playtech and has significantly evolved the Company's income model. As a result, comparisons with revenues in 2008 against the current year are not on a pure like for like basis, and accordingly the Company is providing pro-forma figures to aid comparison. William Hill Online is performing well and in line with our expectations.
The Group's key performance indicator, being gross income*, increased by 14% in Q1 2009 over Q4 2008. This performance is reflected by strong cash generation during Q1 2009 of more than €21 million and an enhanced adjusted EBITDA margin for the Group.
Financial Highlights
- Gross income* for the quarter totalling €36.0 million, representing an increase of 46% on the €24.7 million earned in Q1 2008 and an increase of 14% on the €31.5 million achieved in Q4 2008
- Adjusted EBITDA margin for the Group now exceeding 83%, reflecting the higher margin contribution from the William Hill Online business
- Net cash at 31 March 2009 of €53.0 million, an increase of €21.4 million from the year end position
- Following reduced royalties from the purchased assets injected into William Hill Online, which are being more than offset by an increased level of profit share, total Group revenues in Q1 2009 were €28.2 million, an increase of 14% from €24.7 million in Q1 2008 and a decrease of 10% from €31.5 million in Q4 2008. Pro-forma Group revenues, adjusted historically for like for like comparison, show a 1% decrease in Q1 2009 on the previous quarter
- Revenues from royalty income include only 13 days of William Hill Online poker migration and no contribution from casino migration that is planned to be implemented later in the year
- Casino revenues totalled €18.5 million, an increase of 8% from the €17.2 million in Q1 2008 and a decrease of 16% on the €22.1 million earned in Q4 2008. Pro-forma casino revenues, adjusted historically for like for like comparison, show a 6% decrease in Q1 2009 on the previous quarter
- Poker revenues totalled €8.8 million, an increase of 26% on €7.0 million in the comparable 2008 quarter and an increase of 3% on the €8.6 million achieved in Q4 2008. Pro-forma poker revenues, adjusted historically for like for like comparison, show a 7% increase in Q1 2009 on the previous quarter
- Share of William Hill Online profit in Q1 2009 totalled €7.8 million
* Gross income defined as income from royalties plus profits generated from the Group's share in William Hill Online
Operational Highlights
- William Hill integration is proceeding well with migration of the William Hill poker business to Playtech on March 19th earlier than planned
- Five new license agreements signed during the quarter, including well known operators Casino Grand Madrid in Spain and Gamenet in Italy
- Full launch of the Italian poker network in the second week of January. Performance of the Italian poker network exceeding management expectations
- Strong pipeline of new licensees and exciting business opportunities ahead in 2009 including different online gaming operators as well as gaming operators in different soon to be regulated jurisdictions
- Solid progress made towards entering other jurisdictions and MOUs agreed with several leading operators
- First branded game - The Gladiator - successfully launched
- Extension of live gaming offering to European markets
- Launch of an improved bingo product, providing better player experience and enhanced management tools
- Exclusive multi-year licensing agreement signed with Marvel Characters B.V., a wholly owned subsidiary of Marvel Entertainment, Inc., to use Marvel's motion picture brands
- Exclusive multi-year licensing agreement signed with MGM Interactive Inc to use MGM Interactive Inc motion picture brands "Rocky" and "Pink Panther"
Despite the worldwide macro economic environment, Playtech has delivered a strong first quarter. The Group's gross income* in the first quarter was €36.0 million, a 46% increase from that achieved in the first quarter of 2008 and an increase of 14% on the previous quarter. The Group's revenues were up 14% to €28.2 million from the same quarter in 2008 but decreased by 10% compared with the previous quarter. This impact is expected to be temporary and will be compensated in full once William Hill Online migrates all of its casino activity to the Playtech platform. Pro-forma Group revenues, adjusted historically for like for like comparison, show a 1% decrease in Q1 2009 on the previous quarter taking only 13 days of William Hill poker business that migrated on 19th March 2009.
In line with the Company's strategy to focus on anticipated regulatory change in different jurisdictions Playtech has made significant progress, both in Europe and outside Europe. The Company also signed three additional MOU's with operators in the period bringing the total number of signed MOU's to eight. In addition, the Company progressed in its discussions with various operators and maintains a strong pipeline of exciting opportunities.
In the second week of January, the Company fully launched its play for real Italian poker network with four leading Italian operators. Since the inception of the Italian poker network, the network has shown significant growth, exceeding management expectations. During the first quarter, the Company extended the Italian network by signing an agreement with Gamenet and expects to grow the network organically and through the introduction of new licensees.
Current Trading
Current trading for April 2009 was positive, where on an average daily basis, gross income* improved by over 5% compared with the daily average over the whole of Q1 2009. The Company maintains a strong pipeline of new licensees in various jurisdictions, with a strong focus on regulated markets, presenting exciting new business opportunities ahead in 2009. Despite the challenging economic environment, the board remains comfortable with market expectations for the full year.
First Quarter Key Performance Indicators at 31 March 2009
Income (EUR)
| Three months ended '000 (€) | 31 March 2009 | 31 March 2008 | Change | 31 December 2008 | Change |
| Gross Income | 35,970 | 24,700 | +46% | 31,452 | +14% |
| Total Revenue | 28,198 | 24,700 | +14% | 31,452 | -10% |
| WHO Share of profit | 7,772 | - | - |
| Three months ended '000 (€) | 31 March 2009 | 31 March 2008 | Change | 31 December 2008 | Change |
| Total Revenue | 28,198 | 24,700 | +14% | 31,452 | -10% |
| Casino Revenue | 18,547 | 17,240 | +8% | 22,137 | -16% |
| Poker Revenue | 8,773 | 6,981 | +26% | 8,559 | +3% |
Revenue - Share of Geographical Diversity [1]
| Three months ended | 31 March 2009 | 31 March 2008 | 31 December 2008 |
| Europe | 63% | 73% | 66% |
| Asia Pacific | 31% | 20% | 28% |
| Rest of the World | 7% | 7% | 6% |
Revenue - Nominal Change in Geographical Regions
Period | Q1 2009 to Q1 2008 | Q1 2009 to Q4 2008 |
| Europe | +28% | -5% |
| Asia Pacific | +137% | +14% |
| Rest of the World | +24% | -8% |
[1] The relative share is calculated as the total players' income derived from the specific region divided by the total players' income from all regions
Mor Weizer, Chief Executive Officer, and Shuki Barak, Chief Financial Officer, will be hosting an analyst conference call at 09:30 am (GMT) on 13 May 2009.
Details of the conference call are as follows:
| Dial-in no UK: | +44 (0)20 8515 2302 |
| Dial-in no US: | +1 480 629 9822 |
| Conference title: | Playtech Q1 KPI's |
Replay (available for 1 week):
| Dial-In No: | +44 (0)20 7190 5901 |
| PIN code: | 141896# |
For further information contact:
| Mor Weizer, CEO, Playtech Ltd Shuki Barak, CFO, Playtech Ltd c/o Bell Pottinger Corporate & Financial www.playtech.com | Tel: +44 (0) 20 7861 3232 |
| Piers Coombs / Bruce Garrow Collins Stewart | Tel: +44 (0) 20 7523 8000 |
| Mumtaz Naseem Deutsche Bank | Tel: +44 (0) 20 7545 8000 |
| David Rydell / Laura Pope Bell Pottinger Corporate & Financial | Tel. +44 (0) 20 7861 3232 |
