Interactive
UK – Playtech up 18 per cent in first six months
By Phil - 30 August 2016
The first six months of the year saw Playtech grow its revenues by18 per cent to €31.3m with a good contribution from both existing and new licensees and strong performance from structured agreements.
The period, which saw Playtech buy Quickspin for €24m and 90 per cent of BGT for €138m, also saw important new licensees announced including PokerStars and SunBets.
The group also benefitted from omni-channel agreements, including Sports and Casino, with Fortuna announced for Czech Republic, Poland and Slovakia with other regulated markets to follow.
Significant contracts were renewed, with seven of top 10 licensees now on contracts which have at least three years remaining whilst the pipeline of new licensees and new structured agreements remains strong.
Average daily revenue in the Gaming division for the first 55 days of Q3 2016 was up 12 per cent on Q3 2015 and up three per cent on Q2 2016.
Alan Jackson, Chairman of Playtech, commented: “Playtech has made significant progress in 2016 as we have delivered on our strategic objectives.
“The Gaming division continues to deliver strong growth, driven by our industry-leading Casino offering. We have “locked-in” future growth with important new licensees signed and significant contracts renewed. Seven of our top 10 licensees are now on contracts which have at least three years remaining and our pipeline of new licensees and structured agreements remains strong. First half results from our Financials division reflect the full-impact of the transitioning of the business and improvements made due to regulatory changes with Markets now having the right platform for sustainable growth.
“We have continued to execute on our M&A strategy with the acquisitions of BGT and Quickspin announced so far in 2016. We are pleased to announce the adoption of a progressive dividend policy, reflecting our confidence in the Group’s anticipated growth and cash generation. We are also pleased to announce the return of €150m to shareholders through a special dividend with no impact on our M&A capabilities, enabled by our high cash balances and strong cash generation, whilst maintaining an efficient and flexible balance sheet. Given this progress, we remain confident of strong growth in 2016 and beyond.”
