International edition
September 23, 2020

Purchased rivals BGT and Quickspin

Playtech to continue buying spree, makes special payout

Playtech to continue buying spree, makes special payout
Gambling technology company Playtech Plc said it would return USD 169M to shareholders through a special dividend after reporting an 18 percent jump in first-half revenue, helped by strong performance in its gaming division.
Isle of Man | 08/25/2016

Gambling technology company Playtech Plc said it would return USD 169M to shareholders through a special dividend after reporting an 18 percent jump in first-half revenue, helped by strong performance in its gaming division.

"

We have a strong pipeline of M&A targets. We are in discussion in both gaming and finance divisions," CEO Mor Weizer said today, hinting that Playtech would continue its buying spree that has seen it acquiring two companies since May.

The company said it would pay 46 euro cents per share as special dividend on Dec. 6, which would come from its cash pile that stood at 777.6 million euros as of June 30.

Playtech, which provides software for sports betting and online casino and poker games, bought rival operator Best Gaming Technology for 138 million euros in July and Swedish games studio Quickspin AB in May.

Gambling faces higher taxes and tighter regulation, and a series of mergers has intensified competition as firms market themselves to younger sports fans betting via mobile apps.

The company, founded by Teddy Sagi, hiked its interim dividend by 15 percent on Thursday, after strong performance in its key gaming division pushed up its first-half revenue by 18 percent

Playtech's shares rose as much as 5 percent, before paring some gains. They were up 3.4 percent at 930.5 pence at 0836 GMT on the London Stock Exchange.

Revenue rose to 337.7 million euros in the six months ended June 30, from 286 million euros a year earlier. Gaming, which accounted for nearly 90 percent of the company's first-half revenue, grew 11 percent.

Average daily revenue in the gaming division for the first 55 days of the third quarter was up 12 percent, Playtech said, adding that it was confident of "strong" growth in 2016.

 

 

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