Playtech Profits Surge in 2011
Playtech has started 2011 with a bang and so far its profits have increased by more than 11% for the same period last year with its daily activity in the first three weeks. It notified the stock exchange in its fourth quarter trading update today.
Playtech purchased Intelligent Gaming Solutions (IGS), a provider of software based casino management systems to land-based casinos, for an initial £2.5m, rising to £3m. IGS just installed systems in nine casinos, such as the Aspers Group in the UK and the Regency casinos in Greece.
Mor Weizer chief executive of playtech also gave feedback on the purchase, said: “The union of land-based and internet casino network are becoming more important in the industry. This deal has cemented Playtech’s aggressive lead and cross-platform potential.
“The IGS management team has a standing reputation in the development of such systems and we welcome them with opens arms into the Playtech family. They will increase our competitiveness in a product area making our product more lucrative to land-based casinos”.
Playtech said that its total revenues for the last year up and till the 31st December 2010 are up by 24% to €142.3m (£122.4m) compared to €114.8m in 2009 and is positive that it would meet market expectations when reveals its total revenue amount in March.
Total profits for the fourth quarter which ended on the 31st of December last year are up 21% to €36.9m compared to €30.4m last year and 13% higher than the €32.5m achieved in the third quarter of 2010, while quarter-on-quarter revenue performance for internet casino revenues increased 20% to €25.9m, poker profits increased by 3% to €5.9m and bingo profits increased 9% to €3.3m.
Playtech said its share of profit from its joint venture with William Hill Online (WHO) shot up 37% to €30.8m for the full year in comparison to €22.5m in 2009, including €7m in the fourth quarter of 2010.
Analyst at Peel Hunt, Nick Batram, said: “As anticipated that Playtech’s market cap was going to increase significantly making it the most attractive entry point to play the internet gaming sector. There are a number of catalysts that could drive a re-rating in 2011, and we repeat our Buy recommendation.”
Playtech in the last quarter concluded a deal with Finnish provider RAY for its poker and casino platforms that was introduced on 29 November and 60,000 new players signed up by 21st December, according to the company. It also gained two new licensees such as Unibet (Bingo) and Codere (Italian Bingo); launched additional product launches for existing licensees including bet365 (games tab content) and Titan (French poker) and Tain (casino), which will come out shortly. In a statement Playtech said. It said that business ventures with various existing online casinos are in the pipeline. Latest license agreements for regulated markets included Buoagiorno (Italian casino) and Nordic Bet (bingo).[addtoany]