Playtech 2009 profit rises on William Hill venture

Net income climbed to 69.5 million euros (us$ 96 million), from 40.7 million euros, a year earlier, the Isle of Man-based company said in a statement.

Playtech has about a 29 % share of William Hill’s gambling Web sites after a deal that began January 2009. The venture added 22.5 million euros of income before amortization of intangibles last year. Playtech is seeking acquisitions and ventures to help it add software customers. In January, it announced an agreement with New York-based Scientific Games Corp. to develop products together. “It’s definitely a huge opportunity for us and a gateway to the U.S. market,” CEO Mor Weizer told analysts.

Playtech is “OK” with analysts’ 2010 consensus estimates of adjusted earnings before interest, tax, depreciation and amortization of 108 million euros to 110 million euros, Chief Financial Officer Shuki Barak said in a telephone interview. Earnings on that basis climbed 25 % to 93.7 million euros last year.

In February, Playtech acquired Virtue Fusion Ltd. for an initial us$ 44.5 million to add online bingo products. The company added more than 90 casino games last year, and signed 13 new licensees. It expects to add at least 10 licensees this year, Weizer said.

“Playtech is building momentum through a combination of newly regulated markets, acquisitions and strategic deals,” wrote Nick Batram, an analyst with KBC Peel Hunt who has a “buy” recommendation on the shares.

Playtech rose 3 pence, or 0.6 %, to 506 pence in London. The shares have gained 22 % this year, giving the company a market value of us$ 1.3 billion euros (us$ 1.8 billion).