Playtech revenues up 21.2%
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Gaming software developer Playtech reported first half revenues of €214.4m, a 21.2% increase year-on-year and the company said profit was likely to exceed forecast this year.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) rose 28.2% to €97.6m for the period, while adjusted profit went from €66.8m in the first half of 2013 to €96.8m in the period ended 30 June.
"Playtech's organic growth accounted for approximately 8% of revenue growth, while new business, mostly driven by Ladbrokes, accounted for close to 6%," said group's chief executive Mor Weizer.
"The balance is attributable to acquisitions, predominantly PokerStrategy, which was acquired last July, and performed well in a challenging poker environment."
The company said it had reached agreements with British newspaper publisher Trinity Mirror, an unnamed large Italian media brand, as well as leading Mexican gambling group Caliente and Holland Casino.
Playtech also announced that it will invest £10m to become the principal software provider to BGO, a fast growing UK operator.
Ron Hoffman, the group's chief financial officer, said in a statement that profit for the first six months of the year had beaten consensus by 9% and that the company had improved its expectations for the year.
The company increased the interim dividend per share from 7.8 cents to 8.9 cents, while adjusted earnings per share rose 45.4% year-on-year and its cash balance went from €576.2m to €366.0m following payment of special dividends.
"Playtech smashed first half expectations, leading to a 10% full year upgrade to EBITDA," US stockbroking company Peel Hunt said in a note to investors.
"While unregulated Asian earnings may be the main driver, the recent Amaya PokerStar deal reflects the growing value of unregulated earnings for businesses with market-leading positions."
Playtech shares were up 6.86% to 708.50p at 15:44 on Thursday.
DC