Playtech firing in regulated markets

Playtech firing in regulated markets

Monday, April 27, 2015 Totally Gaming
Playtech firing in regulated markets

Gaming software company Playtech is reaping the rewards of targeting regulated markets.

Ron Hoffman, Playtech's chief financial officer, told TotallyGaming.com that the company's Q1 2015 results released today (Monday) show that the focus on growth in areas that have legal gambling - or are in the process of launching legal operations - is paying dividends.

Playtech reported that 40 per cent of its revenue in Q1 came from regulated markets, compared to 36 per cent for the year 2014 and 35 per cent in 2013.

Some of Playtech's most recent major developments included a deal with Holland Casino, helping Ladbrokes expand into Spain, Belgium and Denmark and aiding Bet365's launch in Italy.

"We continue to focus on further business wins in regulated markets in Europe and elsewhere in line with our previously stated strategy," Hoffman told TotallyGaming.com.

"It is important to emphasise that while we see growth in both regulated and dot.com markets, it is regulated business that continues to grow faster as more and more jurisdictions become regulated and as dot.com activities gradually transition to regulated."

It has been another outstanding three-month period for Playtech - which Hoffman noted was the company's "best quarter ever" and 15th consecutive quarter of double-digit revenue growth.

Total revenues were up 31 per cent to €134.9 million ($146.1m) compared to Q1 2014 on a reported basis, which is not adjusted for the impact of the UK point of consumption (POC) tax, which negatively impacted Q1 2015 revenues.

Hoffman noted that daily income was up 3 per cent on Q4 2014, more than 4 per cent if the POC tax was not considered and a huge nine per cent at constant currency and excluding acquisitions.

Year-on-year, the Isle of Man-based company enjoyed growth in all areas except for poker, the smallest part of the company, where revenue fell by 17 per cent.

The standout performer was the company’s land-based unit, where revenue rose 198 per cent to €8.3m, while revenues from its casino business rose by 28 per cent to €55.4m, and the services unit’s sales increased by 27 per cent to €37.8m.

Chief executive Mor Weizer added: "Playtech has seen a strong start to 2015 with continued execution against our strategy which has delivered both on an operational and financial basis.

"The strong start we have made to the year, together with the progress we continue to make in all aspects of the business both on an organic and inorganic basis, gives me great confidence in our ability to deliver strong growth in 2015 and beyond."

In releasing its 2014 figures in February 2015, Playtech chairman Alan Jackson said that the company's strategy is to generate growth in regulated or soon-to-be regulated jurisdictions through a variety of business models.

He added: "The board continues to evaluate the potential for further value-enhancing acquisitions, joint ventures and partnerships, focusing on regulated markets, evaluating these against the possibility of a return of capital to shareholders.

"Playtech has a proven ability of generating value through successful acquisitions and management is confident that this will continue.

"The industry is in the midst of a transition towards regulation and the group is ideally placed to continue taking advantage of this trend."

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