Playtech Expands Operations 2011
Playtech is set to release ten new licenses in 2011. It aims to expand its current growth by partnering with local online casinos and previous monopolies in recently controlled markets.
Mor Weizer reported that 10 new licences will be issued next year, chiefly in poker but also in casino and bingo as Italy and France mature in their respective markets. We’re also engaged with other countries once they have imposed legislation that would regulate internet casino gambling.
“There are still some good opportunities for local internet casinos in the French market who endeavour to expand their poker and sports betting segments. I sincerely believe that more companies will join in and Playtech will be more than happy to offer them its service. This is all incremental revenues for us given the fact we had to close it down ahead of regulation,” he added.
“Our aim is to focus on quality rather than quantity. A contract has been concluded with Finnish monopoly supplier RAY – it’s the only company providing internet games in the country so far. Although Finland might be an eleventh of the UK’s size it has 19,000 brick-and-mortar slot machines in comparisons to the UK’s 37,000 it caters for a populace of 60 million.”
The gross income of Playetch for the quarter has shot up from 30% to €41.3m compared to €31.9m in Q3 in 2009; revenues in total were up 17% to €32.5m from €27.7m. Up and till September 30th gross income had shot up 31% to €129.2m from €98.8m and total profits up 25% to €105.4m, from €84.4m.
Our daily activity for October has increased by 7% in comparison to its average in the seasonally fragile third quarter. “We indicated that our present trading in the first 31 days of the fourth quarter totals more than 25% ahead of the fourth quarter of 2009”.
There is a downward spiral of 30% in our poker profits to €5.7m from €8.2m, 21% less than the second quarter this year; on the positive side Weizer said; the months of September and October indicate that poker action is on the up again. “The FIFA World Cup had an effect on the third quarter which had an adverse effect on our figures.
“With regard to our licenses we are growing, Italy is broadening its horizons, France is on the up as well and we have established a license there too. Playtech has Serbia and Finland on the cards as well. Presently our largest regulated markets are the United Kingdom and Italy.”
“We have seen some very positive growth in Italy the last two years, playtech is the largest software provider in the country and it owns a 16% market cap. Earlier this year Bingo has been introduced and we engrained ourselves as market leaders with a 25% market share,” Weizer said.
“A very large portion of our mainstream revenue is still generated in regulated markets. Thanks to the increase in our gambling activities in the UK, Italy and Finland, the latter is set to regulate its internet casino industry soon.”
Casino profits have increased 17% to €21.7m from €18.5m but dropped 13% on the second quarter this year. Bingo profits totalled €3.1m, up 11% on Q2 2010, indicating a positive growth from Virtue Fusion, toughened up by the Italy’s new bingo set-up.
Not including the blow of the shutting down of France before regulation, casino profits have dropped in the third quarter compared to Q2 by 2% and poker revenues dropped 13%. Shares profits in William Hill Online were up 111% to €8.8m from €4.2m, up 15% from Q2 this year.[addtoany]