Playtech buys UK casino gaming company IGS for 5.5 million euros

The company will finance the acquisition from its cash resources. IGS has installed its system at nine casinos in the UK and Greece to date.

Playtech said that IGS complements its current business, especially Videobet, and enhances its cross platform capability, as land-based operators seek to develop online operations. Playtech CEO Mor Weizer, said, "The convergence of land-based and online segments is becoming a key theme in the industry."

Playtech's gross revenue rose 26% to 173.1 million euros in 2010 from 137.3 million euros in 2009. Total revenue rose 24% to 142.3 million euros in 2010 from 114.8 million euros in 2009. The company's share in the profit from William Hill Online plc rose 37% to 30.8 million euros from 22.5 million euros.

Fourth quarter gross revenue rose 14% to 43.9 million euros from 38.5 million euros for the corresponding quarter of 2009, while total revenue rose 21% to 36.9 million euros from 30.4 million euros. Fourth quarter casino revenue totaled 25.9 million euros, 20% more than in the preceding quarter, while poker revenue was 5.9 million euros, and bingo revenue was 3.3 million euros.

61% of Playtech's revenue in 2010 came from Europe, down from 64% in 2009, and 33% from the Asia Pacific region, up from 30%. These trends are extenuated in the fourth quarter: 60% of revenue came from Europe, and 36% from the Asia Pacific region.

Playtech added that daily activity in the first three weeks of January was more than 11% greater than in January 2010 and over 1% above the average in the fourth quarter of last year. It had 68 million euros in cash reserves at the end of December, but it still has to make its final 15.1 million euros for the acquisition of William Hill.