Poker sales boost Playtech

Playtech followed up a bullish third-quarter revenue performance by reporting strong trading in October and an even better showing so far this month.

The software provider for the online gambling industry, which last month became the main supplier of gaming software for William Hill, the bookmaker, said trading in October was 10.6 per cent higher than the daily average in the third quarter.

It signed four new licence agreements in the period and three memorandums of understanding, and also launched Asian peer-to-peer games. November trading figures are stronger than last month, Playtech added.

Group revenues of €28.5m (£23.2m) amounted to a 67 per cent rise compared with the same period last year.

Compared with the second quarter, revenues rose 6 per cent, boosted by poker sales, which rose 9 per cent. Casino revenues rose 5 per cent. Its net cash position at October 30 was €204m.

Revenues in Asia-Pacific now make up a quarter of group sales, compared with a fifth a year ago. European sales make up 69 per cent of the total, and from now on Playtech will report in euros.

In the nine months to September 30, Playtech revenues rose 78 per cent compared with the same period last year.

Playtech's revenues in dollar terms were flat quarter-on-quarter, but given the dollar's strengthening position over the period analysts said that represented an impressive showing.

Mor Weizer, chief executive, said the William Hill deal was the first in what he called "a number of other potentially significant . . . acquisition opportunities".

Having signed a licensing deal with Paramount, Playtech said it was actively exploring further deals and was in talks with owners of several leading brands. Its shares fell 15p to 365p.
Copyright The Financial Times Limited 2008

News Added: 12 November, 2008

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