Playtech delivers 25% revenue growth in H1

Playtech delivers 25% revenue growth in H1

Friday, August 25, 2017 Posted by James Walker
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The governance of FTSE-listed Playtech has detailed a strong momentum to its first half of 2017, as the company secured vital renewals of Tier 1 contracts with operators including Sky Bet, Betfred and Paddy Power Betfair.

Updating the market, Playtech highlighted its proven multi-channel strategy, which had generated group revenues of €421.6 million, up 25% on the €337 million posted in the first half of 2016.

Aided by a strengthened commercial pipeline and strong KPI gains across its product portfolio, Playtech’s governance reported first-half EBITDA of €171 million, up 19% on the prior-year period. Net profit totalled €90 million.

Issuing a forward-looking statement, Playtech governance noted the firm’s strong “gross cash” position, which currently stands at more than €500 million as of June 30.

During the first half of 2017, Playtech focused on innovating its multi-channel assets, developing new product propositions for its live gaming division and further investing in product development to aid new asset integrations.

Further to its financial update, the group this week detailed that it had acquired B2B financial trading and risk management platform provider Alpha UK for $150 million.

The company has moved to form a new financial trading services division, TradeTech Group, which will be led by Ron Hoffman as chief executive.

Updating investors, a confident Alan Jackson, chairman of Playtech, commented on the H1 performance:

“The proven strength of the Playtech model was once again demonstrated with a strong H1 performance driven by both underlying growth and recent acquisitions. As always, Playtech’s performance has been converted into strong cash generation, enabling a 10% increase in the interim dividend, in line with the progressive dividend policy.”

“The first half of the year saw Playtech’s gaming division deliver strong growth with double-digit underlying growth and recent acquisitions integrated and performing in line with expectations.

“Playtech has also continued to execute on its industry leading omni-channel solution by deepening its offering in key verticals with the integration of Playtech BGT Sports creating a fully integrated best-in-class sports technology solution and the launch of the world’s largest live casino studio in Latvia, revolutionising the offering in a growing and dynamic channel.”

Totally Gaming says: Playtech governance is right to feel confident on 2017 full-year expectations. For its investors, the company is a proven ‘cash generating’ business, which can still invest in innovating and bringing new products to market. The launch of TradeTech Group, sees Playtech continue to diversify its product portfolio, however some commentators may view this move as Playtech now being too big for the industry.

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