Playtech profit jumps and 2012 off to strong start

(Estonia).- Playtech reported a 22 percent jump in earnings and said 2012 had started well following a series of acquisitions that have bolstered its presence in a booming internet gambling industry.

2012-03-19

United States

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(Estonia).- Playtech reported a 22 percent jump in earnings and said 2012 had started well following a series of acquisitions that have bolstered its presence in a booming internet gambling industry.

The Estonia-based company, which operates a joint venture with Britain's biggest bookmaker William Hill, reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for 2011 of 125.5 million euros (us$ 163.48 million) compared to 103.1 million euros in 2010. The consensus estimate for EBITDA was 111.6 million euros, according to a Thomson Reuters I/B/E/S poll of 10 analysts.

"Playtech has continued to focus on regulated markets with organic development and targeted acquisitions that will ensure it can take best advantage of the opportunities created by the structural changes underway across the worldwide gaming industry," Chairman Roger Withers said in a statement last Thursday.

"In view of the company's board changes and progress in the last year, Playtech looks forward to an exciting year ahead with potential new joint venture partnerships, new licensee prospects and a commitment to joining the Main Market."

The company said the year had started well, with like-for-like growth in daily average revenues for the first nine weeks of 2012 up over 23 percent compared to the same period last year.

Playtech said technology acquisitions since January 2011 - Intelligent Gaming, Mobenga, Ash Gaming, Geneity and PTTS - were performing well. The firm raised us$ 156.7 million through a share placing announced in November to fund new acquisitions.

Total revenue for 2011 increased 46 percent to 207.5 million euros, compared to 142.3 million euros in 2010. The company ended the year with 137.3 million euros cash following its fundraising towards the end of the year. Playtech is proposing a combined interim and final dividend of 16.5 cents per share.

The firm said in January that it saw opportunities to expand globally as gambling laws relax worldwide, and also added that it was in talks with possible U.S. partners after the Justice Department said that only online betting on sporting contests was unlawful, making a re-opening of the country's online gambling market possible.

The firm recently announced joint ventures with German gaming machine business Merkur and South African gaming and hospitality business Peermont.