Playtech Reports Strong H1 Profit Growth
UK software supplier Playtech has credited its strategic and operational progress within regulated iGaming markets for a significant rise in its net profit margins. The firm’s net profits grew by 25% year-on-year to €112.4 million ($130m) for the first half of the current year, according to its most recent financial report.
The famed game developer also enjoyed an overall revenue increase of 4% to €436.5 million during the period in review, which stacked up positively against the €421.6 million it earned during the same half of last year.
Content Deals Fuel Expansion
According to the firm, not only was revenue boosted by its significant operational progress, but new licensee agreements in key markets in Latin America, Europe and the UK also assisted its H1 growth rates. These reportedly included an agreement with Gala Leisure Buzz Bingo UK, and deals with the Polish national lottery Totalizator, Portugal’s SAS, and Colombia’s bookmaking service Sportium.
Additionally, a ground-breaking acquisition of Italy-based software provider Snaitech (which brought in revenues of over €868 million in 2017 alone) was completed by the UK headquartered supplier on August 3 this year. As a result of these deals, the confidence of the firm’s investors has grown considerably, with Playtech shares trading at 8% up on 23 August and rising even more in value since then.
With that said, ‘disappointing’ market performances in Asia paired with the €824 million purchase of Snaitech definitely impacted on the company’s adjusted net profits and adjusted EBIDTA for H1. Adjusted net profits fell 34% to €83.3 million for the quarter, and adjusted EBITDA also dropped by 15% during the same period to €145 million.
Chairman Comments on Results
Alan Jackson, Playtech’s Chairman, noted that trouble in the Asian market are not reflective of Playtech’s core model strength, as the regulated sector continues to show impressive organic growth and overall momentum. He also added that 69% of the group’s H1 earnings came from regulated gaming markets, compared to just 50% in the same period of 2017.
As part of the firm’s goal to continue its regulated market expansion, Ian Penrose was also recently named a new member of the company’s board thanks to his strategic and operational expertise within regulated gambling markets, and particularly in that of the USA.
Founded in 1999, Playtech is a global supplier and developer of gambling and entertainment software. The firm supplies its online slots and poker, bingo, sports betting and scratch card offerings in regulated jurisdictions worldwide, and is currently based in the Isle of Man, UK. Headed up by current Chief Executive Mor Weizer since 2007, the firm also operates successful subsidiaries like YoYo Games and Pluto under its extensive business umbrella.