27th Aug 2015 06:58
LONDON (Alliance News) - Playtech PLC Thursday reported a rise in pretax profit for its first half, and expressed confidence in further growth in 2015 "any beyond", based on progress in its Gaming business and steps it has made to form and bolster its new Financials division.
The gambling software and services provider proposed an interim dividend of 9.6 euro cents, up from 8.9 cents a year before.
For the half year to end-June the company posted a pretax profit of EUR85.8 million, up from EUR76.9 million a year before, as revenue rose to EUR286.0 million from EUR214.4 million, although this was partly offset by a jump up in distribution costs before depreciation and amortisation.
Revenue growth was driven by a strong performance from the company's Casino, Services and Land-based segments, and a EUR10.6 million contribution from the company's newly formed Financials segment.
Playtech has taken steps to form and develop a new Financials segment to its business, starting with acquiring TradeFX Ltd in April for an initial EUR208 million. It has made a GBP460 million cash offer for Plus500 Ltd, which is expected to complete in September, subject to regulatory approvals.It had also agreed to acquire Ava Trade for USD105 million, and this deal is also expected to complete in September.
Average daily revenue from the company's Gaming division for the first 55 days of the third quarter of 2015 is up 15% compared to the same period the previous year. TradeFX, since renamed Markets Ltd, saw a good performance in the 55 days, with contract for difference customers up 19% compared to the same period in the previous year, and first time depositors up 12%.
"Taken together, the progress we have made gives me great confidence that the sustained momentum in our business will result in further growth in 2015 and beyond," said Chairman Alan Jackson in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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