First Quarter Trading Update
Revenues - excluding contributions from the US
Geographical Diversity (excluding US)
Relative Share of Geographical Diversity (1)
Nominal Change in Geographical Regions
(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
Analyst Conference Call
An analyst conference call has been organised for 9:00 am GMT today hosted by the Chief Executive Officer, Mor Weizer.
The dial-in details are:
+44 (0)208 515 2352
Conference call title: Playtech KPI's
For Further Information:
Mor Weizer, CEO, Playtech Ltd
c/o Bell Pottinger
Tel: 020 7861 3232
http://www.playtech.com
David Rydell / Helen Tarbet
Bell Pottinger Corporate & Financial
Tel: 020 7861 3232
Playtech Limited ("Playtech" or "the Company") First Quarter Trading Update
Playtech (AIM: PTEC), the international designer, developer and licensor of
software for the online and land-based gaming industry, announces today its trading update for the first quarter of 2007.
Financial Highlights
• Total revenues were $19.8 million, representing an increase of 14% on the
$17.4 million achieved in Q4 2006 and a decrease of 5% on the $20.8 million
in Q1 2006
- Casino revenue totalled $15.2 million, an increase of 7% from $14.3
million in Q4 2006 and a reduction of 17% from $18.3 million in Q1 2006
- Poker revenue totalled $4.2 million, an increase of 56% from $2.7
million in Q4 2006 and an increase of 102% from $2.1 million in Q1 2006
• On a pro forma basis, which excludes royalty contributions from the US in
2006, total revenues increased by 22% compared to Q4 2006. Compared to Q1
2006 total revenues increased by 85%. Calculated on the same basis:
- Casino revenue increased by 14% compared to Q4 2006 and increased by
62% compared to Q1 2006
- Poker revenue increased by 64% compared to Q4 2006 and increased by
257% compared to Q1 2006
Migration of Tribeca Licensees
During March 2007 the migration of the Tribeca licensees onto the iPoker network was successfully completed, one month ahead of management expectations. Following this migration and internal growth of existing licensees, Playtech's iPoker network has more than doubled its number of players and has become one of the world's largest poker networks.
Total revenue for the quarter included a contribution from the migrated
licensees during part of the last month of the quarter. Playtech's revenues from the migrated licensees are being generated both from the licensees' poker activity (rake) and their side games activity. The second quarter of the year will include a full three month revenue contribution from these licensees.
A large portion of the migrated licensees have added the casino side games to their poker clients thus creating an additional revenue stream which will be reflected in the Company's casino revenues going forward.
Geographical Analysis
The European segment has grown significantly over the past year and is expected to continue to show further growth following the Tribeca acquisition and as a result of internal growth from existing licensees. The slowing of the Asia Pacific segment is mainly attributed to the restructuring of one of the Company's licensees, which is due to be completed by the end of the second quarter.
Current Trading
Playtech has concluded a very positive first quarter of 2007 and this trend is continuing into the second quarter
The Company expects that one of its existing licensees in the Asia Pacific region will conclude its restructuring in the next couple of months.
The Company continues to develop its land-based product through its Videobet division. Videobet has concluded the development of its server based, LAN and stand-alone terminals and continues to invest in expanding its games offering portfolio to accommodate the requirement of the European, Asian and South American markets.
The Company expects additional growth through potential licensing deals which are currently being negotiated with online operators. The recent regulatory changes in various jurisdictions are creating significant business opportunities which Playtech is actively pursuing.
Mor Weizer, Chief Executive Officer, commenting on the results, said today:
"Playtech has started the year extremely well and this is likely to continue
into the second quarter of the year. Recent changes across various regulated markets are creating significant business opportunities for Playtech, which we are actively pursuing. We look forward to developing these opportunities supported by our strong focus on product innovation and development."
First Quarter Key Performance Indicators at 31 March 2007
Revenues
Playtech (AIM: PTEC), the international designer, developer and licensor of
software for the online and land-based gaming industry, announces today its trading update for the first quarter of 2007.
Financial Highlights
• Total revenues were $19.8 million, representing an increase of 14% on the
$17.4 million achieved in Q4 2006 and a decrease of 5% on the $20.8 million
in Q1 2006
- Casino revenue totalled $15.2 million, an increase of 7% from $14.3
million in Q4 2006 and a reduction of 17% from $18.3 million in Q1 2006
- Poker revenue totalled $4.2 million, an increase of 56% from $2.7
million in Q4 2006 and an increase of 102% from $2.1 million in Q1 2006
• On a pro forma basis, which excludes royalty contributions from the US in
2006, total revenues increased by 22% compared to Q4 2006. Compared to Q1
2006 total revenues increased by 85%. Calculated on the same basis:
- Casino revenue increased by 14% compared to Q4 2006 and increased by
62% compared to Q1 2006
- Poker revenue increased by 64% compared to Q4 2006 and increased by
257% compared to Q1 2006
Migration of Tribeca Licensees
During March 2007 the migration of the Tribeca licensees onto the iPoker network was successfully completed, one month ahead of management expectations. Following this migration and internal growth of existing licensees, Playtech's iPoker network has more than doubled its number of players and has become one of the world's largest poker networks.
Total revenue for the quarter included a contribution from the migrated
licensees during part of the last month of the quarter. Playtech's revenues from the migrated licensees are being generated both from the licensees' poker activity (rake) and their side games activity. The second quarter of the year will include a full three month revenue contribution from these licensees.
A large portion of the migrated licensees have added the casino side games to their poker clients thus creating an additional revenue stream which will be reflected in the Company's casino revenues going forward.
Geographical Analysis
The European segment has grown significantly over the past year and is expected to continue to show further growth following the Tribeca acquisition and as a result of internal growth from existing licensees. The slowing of the Asia Pacific segment is mainly attributed to the restructuring of one of the Company's licensees, which is due to be completed by the end of the second quarter.
Current Trading
Playtech has concluded a very positive first quarter of 2007 and this trend is continuing into the second quarter
The Company expects that one of its existing licensees in the Asia Pacific region will conclude its restructuring in the next couple of months.
The Company continues to develop its land-based product through its Videobet division. Videobet has concluded the development of its server based, LAN and stand-alone terminals and continues to invest in expanding its games offering portfolio to accommodate the requirement of the European, Asian and South American markets.
The Company expects additional growth through potential licensing deals which are currently being negotiated with online operators. The recent regulatory changes in various jurisdictions are creating significant business opportunities which Playtech is actively pursuing.
Mor Weizer, Chief Executive Officer, commenting on the results, said today:
"Playtech has started the year extremely well and this is likely to continue
into the second quarter of the year. Recent changes across various regulated markets are creating significant business opportunities for Playtech, which we are actively pursuing. We look forward to developing these opportunities supported by our strong focus on product innovation and development."
First Quarter Key Performance Indicators at 31 March 2007
Revenues
| Three months ended | 31 March | 31 March | Change | 31 Dec | Change |
| '000 ($) | 2007 | 2006 | 2006 | ||
| Total Revenues | 19,792 | 20,767 | -5% | 17,353 | +14% |
| Casino Revenues | 15,215 | 18,246 | -17% | 14,255 | +7% |
| Poker Revenues | 4,221 | 2,090 | +102% | 2,699 | +56% |
Revenues - excluding contributions from the US
| Three months ended | 31 March | 31 March | Change | 31 Dec | Change |
| '000 ($) | 2007 | 2006 | 2006 | ||
| Total Revenues | 19,792 | 10,702 | +85% | 16,257 | +22% |
| Casino Revenues | 15,215 | 9,368 | +62% | 13,360 | +14% |
| Poker Revenues | 4,221 | 1,182 | +257% | 2,579 | +64% |
Geographical Diversity (excluding US)
Relative Share of Geographical Diversity (1)
| Three months ended | 31 March | 31 March | 31 Dec |
| 2007 | 2006 | 2006 | |
| Europe | 65% | 48% | 57% |
| Asia Pacific | 24% | 41% | 30% |
| Rest of the World | 11% | 11% | 14% |
Nominal Change in Geographical Regions
| Period | Q1 2006 to Q1 | Q4 2006 to Q1 |
| 2007 | 2007 | |
| Europe | +112% | +33% |
| Asia Pacific | -8% | -6% |
| Rest of the World | +49% | -11% |
(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
Analyst Conference Call
An analyst conference call has been organised for 9:00 am GMT today hosted by the Chief Executive Officer, Mor Weizer.
The dial-in details are:
+44 (0)208 515 2352
Conference call title: Playtech KPI's
For Further Information:
Mor Weizer, CEO, Playtech Ltd
c/o Bell Pottinger
Tel: 020 7861 3232
http://www.playtech.com
David Rydell / Helen Tarbet
Bell Pottinger Corporate & Financial
Tel: 020 7861 3232
