24th Aug 2006 07:01
Playtech Limited24 August 2006 Playtech Ltd Interim Results for the Six Months Ended June 30 2006 Financial Highlights •Revenues up by 139% to $46.2 million (2005 - $19.3 million) •Casino revenues up by 129% to $40.4 million (2005 - $17.6 million) •Poker revenues up by 851% to $4.8 million (2005 - $0.5 million) •Adjusted net profit* up by 172% to $37.3 million (2005 - $13.7 million) resulting in a margin of 81% compared to 71% last year •Adjusted basic EPS* up by 157% to 18 cents (2005 - 7 cents) •Interim dividend of $18.5 million equating to 8.7 cents per share to be paid on 6 October 2006, representing approximately 50% of the adjusted net profit* Operational Highlights •Seven new licensees added so far this year - three through migration of active game sites with the majority accommodating Asian and European players •New products developed and launched •Mobile offering - providing Casino gaming through mobile phones •Videobet - providing access to the land and server based gaming terminals •Initiating new Asian focused games and product development, including Mahjong. •Long-term recruitment initiative underway - Playtech Academy in Estonia and new development centre in Bulgaria Avigur Zmora, Chief Executive, commented: "Playtech is ideally placed to take full advantage of the growth being enjoyedby global gambling markets. Geographical diversification through the addition ofquality licensees, coupled with our new product pipeline, will allow us to offeran enhanced and more complete solution to our licensees and their customers. Asa result of our various initiatives, the global markets, in which we hold strongpositions and the continued growth being enjoyed by the online gaming marketworldwide, I look forward to the second half of the year with confidence." *excluding founders cash contribution and employee stock option expenses of $6.8million For further information: Avigur Zmora, CEO, Playtech Ltdc/o Bell Pottinger Tel: 020 7861 3232www.playtech.com David Rydell / Peter OteroBell Pottinger Corporate & Financial Tel. 020 7861 3232 Chairman's Statement It gives me pleasure to present the first set of financial results for Playtechsince its shares were admitted to AIM by way of an Initial Public Offering inMarch this year. In the six months under review the Group has made outstanding progress in allkey areas of performance. I am pleased to report that the business has grownsignificantly in terms of revenues generated from existing licensees and,importantly, in terms of winning new high quality clients. In the period, sevennew licensees have been added to the portfolio - bringing the total to 42operators. Between them, our clients operate 137 gaming sites, making Playtechone of the world's leading software providers to the gaming industry. The out-performance of the operations has translated into strong financialresults. In the period, the Group improved revenues by 139% and adjusted net profit increased by 172%. As a result the Board is pleased to declare its maidendividend as a listed company - an interim payment of 8.7 cents a share. Adjustedbasic earnings per share* amounted to 18 cents per share, a 157 % rise, which is a creditable achievement from a growing company. The international online gaming market continues to grow strongly for Playtech.Recent legal issues in the US have caused concern amongst investors in theonline gaming sector, however, as Playtech is not an operator, does not supplySportsbook software or have exposure to this section of the market, we believethat the Group remains in an extremely strong position. It is the Board's firmview, therefore, that the worldwide trading environment remains robust and thatthe US legal issues have not altered the prospects for Playtech in any way. Playtech is committed to diversifying its business portfolio, in terms of bothgeography and product, and I am pleased to report that progress has been made inboth of these areas. The percentage of total revenues derived from the US havedecreased, whilst the contribution from Europe and the exciting Asian marketshave increased. The Group launched two new products last month. Its mobileproduct offers players access to Playtech's popular Casino platform throughtheir mobile phones, whilst the Videobet product provides access to the landbased gaming terminal market, an entirely new market segment for the Group thatutilises the leading expertise that Playtech has gained through the developmentof its other online gaming software products. The Group also has a number of products under development due to be released inthe second half of the year. Mahjong will provide this hugely popular game tothe Asian market and its live gaming offering is also being enhanced to furthersupport the Asian market in which this type of gaming is favoured. In a show of particular generosity the founding shareholders of Playtech haveoffered the employees of the Group a cash contribution of $6.6m from their IPOproceeds payable through a designated trust, as an expression of theirappreciation for the hard work and commitment shown to date. For this themembers of the Board would like to extend their thanks. I would also like to addmy thanks to all our employees and to my fellow directors for the significantcontribution they have made to our success. In summary, the Board is very excited about the prospects for the second half ofthe year. Growth in the international online gaming market continues apace andthe Group is building its position in its traditional markets whilst expandinginto growth markets such as Asia. Product development remains at the forefrontof Playtech's strategy which will enable the Group to continue supplyingoperators with market leading products and new solutions. As a result we lookforward to a prosperous and successful future. *excluding founders cash contribution and employee stock option expenses of $6.8million Chief Executive's Report I am delighted to report a very successful first half of 2006, our first as apublicly quoted Company. Despite the demands that successfully completing theIPO has placed on the management's time in this period, we still managed toreinforce Playtech's position as one of the world's leading software providersto the gaming sector. The Company has managed to build on its already high historic growth ratesduring this period, achieving a 139% increase in revenues compared to the sameperiod last year and an 172% increase in adjusted net profit*. The poker productnow accounts for over 10% of the Company's top line and is expected to increasethis contribution into the future. The Board's focus in the first half of the year was to maintain our high growthrates and this has paid off with the Company registering the fastest growth inits short history. We would not have been able to achieve this had it not beenfor the outstanding efforts of our employees and for this I extend the sincerestthanks of the Board. As a public company we are now able to offer a shareincentive scheme that rewards such loyalty and this will help us recruit andretain the quality of staff for which Playtech has become known. One of the main reasons for becoming a public company was to create new andexciting business opportunities for Playtech and I am pleased to say that ouraim in this respect has been achieved. We are taking part in much largerbusiness development opportunities and achieving a higher level of sales than weever had before. Since the Company was established, at the end of 1999, it has been evolving itsstrategy to adapt to the changes and dynamic growth within the online gamingmarket. Our first transition period involved geographical diversification inorder to reduce exposure to any one particular market whilst taking advantage ofemerging high growth markets such as Asia, and positive changes have been madein this regard. We are currently in the middle of our second transition period which is focusedon diversifying the Company's product portfolio by leveraging the success of thecasino software offering in order to become a major multi product supplier. Weare investing considerable efforts into new product development and havelaunched two new products last month - namely Mobile gaming and Videobet, ourserver based gaming terminals product. Strategy Our goal is to be the leading software solution company to the internationalonline gaming market. In order to achieve this, the Board has set out thefollowing aims: 1. To continually develop market leading solutions for our licensees which enable them to increase their revenues 2. To supply a global software solution that is tailored for specific markets 3. To enhance cross selling opportunities using the unified system philosophy 4. To continue worldwide expansion Recruitment Programme At the heart of any successful software company lies quality employees. In orderto ensure that we attract the highest caliber employees we are undertaking anextensive recruitment program aimed at enlarging the Company's research,development and production capabilities. We have established Playtech Academy,our own computer science academy based in Tartu, Estonia, where 40 graduates arealready studying and receiving a world class, tailored IT education. The firstintake will graduate by the end of September 2006, which will provide asignificant number of new programmers trained to the exact needs of Playtech. Inaddition we have established a new development centre in Bulgaria which is inthe process of recruiting its first 20 employees, all of which are ITspecialists. Our recruitment program is central to our strategy of increasing the number oflicensees and for the introduction and support of new products. Growing our basein Estonia and expanding into Bulgaria will allow us to keep control of our lowdevelopment and production costs whilst increasing our revenue potential. Licensees The Board is continuously looking at ways to diversify its licensee portfolio byadding quality international customers. So far this year seven new licenseeshave been added, three of which migrated their active game sites and themajority of which accommodate Asian and European players. This goes a long wayto achieving the Board's goal of adding between 10 to 12 new licensees for theyear. Choosing the right partner licensee is very important to Playtech as clientoperators carry with them the reputation of Playtech into the wider market. Itis, therefore, of the utmost importance that the Board is confident that a newlicensee has the potential to attract a substantial level of players. Being a public company provides a level of security and transparency required bysome of our prospective licensees. As a result, we have a good business pipelinewhich helps the Board look forward with confidence. Products A key part of the Playtech development philosophy is to supply licensees with aunified system that ensures cross selling and revenue maximization. We are inthe process of adding new products to our traditional Casino, Poker and Bingoofferings. During the first half of the year we have completed our Mobileoffering as an integrated part of our online Casino offering. Mobile can,therefore, be used as a stand alone platform or be utilized through crossselling opportunities directly from the online Casino, Poker and Bingo products.In addition, we have launched our Videobet product which provides software toland based, server based gaming terminals. This takes Playtech into a whole newland based market with software that is based on our market leading onlineexpertise. Our new game developments are mainly focused on the Asian and South Americanmarkets, providing players from these areas with the traditional games that theyhave grown up with. This approach is much more effective than trying to convertthese conservative gaming markets to Western games that players are unfamiliarwith. For the Asian market we are close to launching versions of Mahjong. TheMahjong development process will be divided into stages and will continue into2007. In addition, we are enhancing our live gaming experience in order tobetter support our Asian licensees and increase our Casino game portfolio. Option Plan and Founders' Cash Contribution to Employees As has been previously stated, the quality of employees is the core ofPlaytech's success and it is important that the knowledge base built up withinthe Company is maintained and grown. Now that we are a public company we areable to offer our employees an option plan that will allow them to share inPlaytech's future success. In addition the founders of the Company who sold shares during the IPO haveoffered a one-time cash contribution to show their appreciation for the hardwork and outstanding achievements shown by the Company's employees. The totalamount of the cash contribution was $6.6 million to be distributed amongstemployees. The Board approved this gesture and thanks the founders for theirinitiative. While International Accounting Standards dictate that such a cashcontribution be registered as an expense in our income statement, it will haveno impact on the cash flow of the Company due to the fact that the entire sum iscontributed directly by the founders for the benefit of Playtech's employees. Dividends Given Playtech's highly cash generative nature we are pleased to announce aninterim dividend payment of 8.7 cents per share. As has been previously statedit is the Board's ongoing policy to distribute 50% of net profit every year toshareholders via the dividend. Outlook and Current Trading Playtech is ideally placed to take full advantage of the growth being enjoyed byglobal gambling markets. Geographical diversification through the addition ofquality licensees coupled with our new product pipeline will allow us to offeran enhanced and more complete solution to our licensees and their customers.This is all designed to increase the licensees revenues and through the royaltymodel, Playtech's revenues. As a result of our various initiatives, the strongpositions that we hold in global markets and the continued growth being enjoyedby online gaming worldwide, I am looking forward to the second half of the yearwith confidence. *excluding founders cash contribution and employee stock option expenses of $6.8million Financial Review Playtech concluded the first half of the year with a very strong set of results.The Group experienced revenue growth in respect of all of its product areas andits tight control over costs resulted in an encouraging increase in the margins.A positive cash flow from operations, together with the cash proceeds from theIPO, placed Playtech in a very healthy position. The following is a summary of the key elements of the financial results. Itshould be noted that all figures quoted exclude the cash contribution from thefounders of the Company to Playtech employees and Employees stock optionexpenses to the amount of $6.8 million. As at 30 June 2006, the Group's revenues were generated by 42 licenseesoperating 137 game sites. Revenues have increased from the same period last yearby 139% to $46.2 million (2005 - $19.3 million) which was due to the combinedgrowth of both the Casino and Poker products. Casino revenues increased by 129%to $40.4 million (2005 - $17.6 million) and Poker revenues increased by 851% to $4.8 million (2005 - $0.5 million). Adjusted operating profit* increased from the same period last year by 166% to$36.5 million (2005 - $13.7 million), resulting in a margin of 79% compared to71% in H1 2005. Adjusted net profit* increased by 172% to $37.3 million (2005 -$13.7 million), resulting in a margin of 81% compared to 71% in H1 2005.Adjusted basic EPS* increased by 157% to 18 cents (2005 - 7 cents). Total cost of operations increased from the same period last year by 73% to $9.7million (2005 - $5.6 million). Operating expenses increased from the same period last year by 51% to $3.2million (2005 - $2.1 million). Salaries contributed 52% to this increase, reflecting the number of employees joining the Group in order to support the growing operating activities. Sales and Marketing expenses increased by 37% to $3.7 million (2005 - $2.7million) mainly as a result of salary increases attributable to the recruitmentof new sales staff, an increase in reseller fees that are paid as a percentageof revenue and an increase in the number of trade shows attended. Development costs decreased from the same period last year by 18% to $0.4million (2005 - $0.5 million), as attributable costs to the development of the Group's Videobet, Mobile and Mahjong products were capitalized this year. In the first half of the year additional development costs capitalized under these activities amounted to $1.0 million (2005 - $0 million). The increase in General and Administrative expenses to $2.5 million before thefounders' cash contribution to employees (2005 - $0.4 million), is mainly due toexpenses associated with the Company's listing on AIM and a provision for bonuses. These bonuses have not yet been allocated and, therefore, have been recorded as General and Administrative expenses. In accordance with generally accepted accounting principles, the founders' cashcontribution to employees of $6.6 million is included as a one time expenseunder General and Administrative expenses. Due to the fact that thiscontribution is fully payable by the founders directly to employees, there is nocash impact on the Group. Employee stock option expenses in H1 2006 amounted to$0.2 million (2005 - $0 million). The only company within the Playtech Group that has taxable income is theIsraeli subsidiary. Following an agreement signed with the Israeli TaxAuthorities during H1 2006, this subsidiary paid $0.2 million in back taxes.Under the terms of the agreement the Israeli subsidiary will pay taxes on a costplus basis going forward. The Group generated $39.1 million of cash over the period from operatingactivities (2005 - $13.4 million). The Group cash usage in investing activities was $2.5 million (2005 - $0.3 million), which mainly accounted for development costs capitalized due to the Videobet, Mobile and Mahjong products. The group'sfinancing activities generated $35.0 million from net IPO proceeds, less thedividend payment to shareholders prior to the IPO (2005 - usage of $10.2million). The Cash balance of the Company, as at 30 June 2006, amounted to $89.6 million.Cash was generated mainly from the net IPO proceeds and from operatingactivities and profit. Financing Income is the result of the interest yield onthe Company cash deposits. On 23 August 2006, the Board declared an interim dividend of $18.5 millionequating to 8.7 cents per share. The dividend will be paid on 6 October 2006 to those Shareholders and Depositary Interest holders on the record as at 8 September 2006. The ex-dividend date will be 6 September 2006. Shareholders andDepositary Interest holders may elect to receive the equivalent dividend amountin pounds sterling. *excluding founders cash contribution and employee stock option expenses of $6.8million CONSOLIDATED BALANCE SHEET U.S Dollars in thousands 30 June 30 June 31 December ---------- --------- ----------- 2006 2005 2005 ---------- --------- ----------- (Unaudited) (Unaudited) (Audited) NON-CURRENT ASSETSIntangible assets 2,778 357 1,388Fixed assets 1,460 695 934Other receivables 108 - 60 --------- ------- -------- 4,346 1,052 2,382 --------- ------- -------- CURRENT ASSETSCash and cash equivalents 89,587 14,226 17,995Trade receivables 5,769 5,458 4,189Related parties and shareholders - 522 -Loan to shareholders - 23,828 -Other accounts receivables 683 236 337 --------- -------- -------- 96,039 44,270 22,521 --------- -------- -------- TOTAL ASSETS 100,385 45,322 24,903 ========= ======== ======== SHAREHOLDERS' EQUITYShare capital - 10 10Additional paid in capital 55,637 100 100Employees stock option reserve 252 - 22Accumulated profit 36,308 39,273 19,587 --------- -------- -------- 92,197 39,383 19,719 --------- -------- -------- NON-CURRENT LIABILITIES 24 8 82 --------- -------- -------- CURRENT LIABILITIESTrade payables 4,239 4,576 2,987Related parties 413 339 918Other accounts payables 3,512 1,016 1,197 --------- -------- -------- 8,164 5,931 5,102 --------- -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 100,385 45,322 24,903 ========= ======== ======== CONSOLIDATED INCOME STATEMENT U.S Dollars in thousands For the six months For the ended year ended -------------------- ---------- 30 June 30 June 31 December ----------- ----------- ----------- 2006 2005 2005 ----------- ----------- ----------- (Unaudited) (Unaudited) (Audited) Revenues 46,178 19,300 47,596 Operating expenses (3,237) (2,105) (4,676) Sales & Marketing expenses (3,746) (2,690) (5,421) Development costs (395) (456) (1,021) General & Administrative expenses (9,132) (357) (931) -------- ------- -------- (16,510) (5,608) (12,049) -------- ------- -------- Operating profit before charges related to founders' cash contributions to employees and Employees stock option plan expenses 36,464 13,692 35,569 Charges related to founders' cash contributions to employees (see (Note 4) (6,566) - - Employees stock option plan expenses (230) - (22) ------- ------- ------- Total benefit charges (6,796) - (22) Operating profit 29,668 13,692 35,547 Financing income 1,076 10 149 Income before taxation 30,744 13,702 35,696 Tax expenses (254) (12) (22) ------- ------- ------- Income from continued activity 30,490 13,690 35,674 ------- ------- ------- Loss on disposal of subsidiary - - (5) ------- ------- ------- Net income 30,490 13,690 35,669 ======= ======= ======= Earnings per share (in Cents) Basic 15 7 18 Diluted 14 7 18 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY U.S Dollars in thousands Employee Additional stock Share Paid in options Accumulated capital Capital reserve profit Total ------- ------- --------- ----------- ------ FOR THE SIX MONTHS ENDED 30 JUNE, 2006 Balance at 1 January 2006 10 100 22 19,587 19,719Changes in equity for the periodNet income - - - 30,490 30,490 -------- -------- -------- --------- --------Total recognized income andexpense for the period - - - 30,490 30,490Dividend paid - - - (21,000) (21,000)Initial Public Offering proceeds - 59,862 - - 59,862Share issue costs - (4,335) - 665 (3,670)Cancellation of issued shares (10) 10 - - -Founders' cash contribution to employees (see Note 4) - - 6,566 6,566Employees stock option reserve - - 230 - 230 -------- -------- -------- -------- -------Balance at 30 June 2006 - 55,637 252 36,308 92,197 ======== ======== ======== ======== ======= FOR THE SIX MONTHS ENDED30 JUNE 2005 Balance at 1 January 2005 10 100 - 25,583 25,693Net income - - - 13,690 13,690 ------- ------- ------- -------- --------Balance at 30 June 2005 10 100 - 39,273 39,383 ======= ======= ======= ======== ======== FOR THE YEAR ENDED31 DECEMBER, 2005 Balance at 1 January 2005 10 100 - 25,583 25,693Changes in equity for the periodNet income - - - 35,669 35,669 ------- ------- -------- -------- -------Total recognized income andexpense for the period - - - 35,669 35,669Dividend paid - - - (41,000) (41,000)Share issue costs - - - (665) (665)Employees stock option reserve - - 22 - 22 ------- ------ ------ ------- ------- Balance at 31 December 2005 10 100 22 19,587 19,719 ======= ====== ====== ======= ======= CONSOLIDATED CASH FLOW STATEMENT U.S Dollars in thousands For the six months For the ended year ended ------------------ ---------- 31 30 June 30 June December ------- ------- -------- 2006 2005 2005 ------- ------- -------- (Unaudited) (Unaudited) (Audited)CASH FLOWS FROM OPERATING ACTIVITIESNet income 30,490 13,690 35,674Adjustments to reconcile Net income to Net cash provided by operating activities (seebelow) 8,652 (256) (436) -------- -------- --------Net cash provided by operating activities 39,142 13,434 35,238 -------- -------- -------- CASH FLOWS FROM INVESTING ACTIVITIESCash outflow from disposal - - (5)Cash inflow from acquisition - - 51Long term deposits (117) - -Acquisition of fixed assets (768) (335) (696)Acquisition of intangible assets (645) - (12)Capitalized development costs (1,007) - (356) ------- ------ -------Net cash used in investing activities (2,537) (335) (1,018) ------- ------ ------- CASH FLOWS FROM FINANCING ACTIVITIESLoan to shareholders - (11,000) (15,087)Related parties and shareholders (205) 829 1,094Security deposits - - 25Dividend paid (21,000) - (12,890)Share issue costs (3,670) - (665)Initial Public Offering proceeds 59,862 - - -------- -------- --------Net cash provided by (used in) financing activities 34,987 (10,171) (27,523) -------- -------- -------- INCREASE IN CASH AND CASH EQUIVALENTS 71,592 2,928 6,697CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 17,995 11,298 11,298 -------- -------- --------CASH AND CASH EQUIVALENTS AT END OF PERIOD 89,587 14,226 17,995 ======== ======== ======== ADJUSTMENTS TO RECONCILE NET INCOME TO NETCASH PROVIDED BY OPERATING ACTIVITIESIncome and expenses not affecting operating cash flows:-------------------------------------------------------Depreciation 241 126 313Amortization 262 56 122Employees stock option plan expenses 230 - 22Founders' cash contribution to employees 6,566 - -Others 11 (2) 7Changes in operating assets and liabilities:Increase in trade receivables (1,580) (2,891) (2,341)Decrease/(increase) in related parties (301) - 7Increase in other receivables (345) (70) (173)Increase in trade payables 1,253 2,186 1,287Increase in other payables 2,315 339 320 -------- ------- ------- 8,652 (256) (436) ======== ======= ======= For the six months For the year ended ended ------------------------- ------------ 30 June 30 June 31 December ----------- ----------- ------------ 2006 2005 2005 ----------- ----------- ------------ (Unaudited) (Unaudited) (Audited) NONCASH TRANSACTIONS Loan to shareholders satisfied by dividend - - 27,905 =========== =========== =========== Dividend - - (27,905) =========== =========== =========== NOTE 1 - GENERAL A. Playtech Limited (the "Company") was incorporated in the British Virgin Islands on 12 September 2002 as an offshore company with limited liability. B. The condensed interim consolidated financial information include the accounts of the Company and all its subsidiaries which together are referred to as the "Group". C. The condensed interim financial information as at 30 June 2006, and 2005 and the six months then ended, respectively, have been reviewed by the Group's external auditors. D. The financial information are expressed in United States Dollars in thousands. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES The consolidated interim financial information of the Group has been prepared inaccordance with International Financial Reporting Standards, includingInternational Accounting Standard ("IAS") and interpretations (collectivelyIFRS) adopted by the International Accounting Standards Board ("IASB") andendorsed for use by companies listed on an EU regulated market. These results have been prepared on the basis of accounting policies expected tobe adopted in the Group's full financial statements for the year ended 31December 2006 which are not expected to be significantly different to those setout in Note 2 to the Group's audited financial statements for the year ended 31December 2005. The financial information is presented in U.S. dollars because that is thecurrency the Group primarily operates in. The financial statements for the year ended 31 December 2005, which wereprepared under IFRS received an unqualified audit report. These financialstatements are also available from the Company's website. The financial information for the periods ended 30 June 2005 and 30 June 2006contained in this interim announcement is unaudited. NOTE 3 - EARNINGS PER SHARE Earnings per share have been calculated using the weighted average number ofshares in issue during the relevant financial periods. The weighted averagenumber of equity shares in issue and the earnings, being profit after tax are asfollows: For the six months For the ended year ended ------------------------ ----------- 30 June 30 June 31 December ----------- ---------- ----------- 2006 2005 2005 ----------- ---------- ----------- (Unaudited) (Unaudited) (Audited) Net income 30,490 13,690 35,669 =========== =========== =========== Denominator - basic Weighted average number of equity shares 206,924,493 200,000,000 200,000,000 =========== =========== ============ Number Number Number Denominator - diluted Weighted average number of equity shares 206,924,493 200,000,000 200,000,000 Weighted average number of option shares 7,747,512 - 510,542 =========== =========== =========== Weighted average number of shares 214,672,005 200,000,000 200,510,542 =========== =========== =========== NOTE 4 - FOUNDERS' CASH CONTRIBUTION TO EMPLOYEES In June 2006, following the IPO, the founders of the Company have allocated $6,566 thousand, of their own personal funds, into a trust fund to the benefit of the Company's employees. The Company accounted for this cash contribution as capital contribution. Earnings per share before founders' cash contribution to employees (in Cents): For the six months For the ended year ended ------------------------- ------------ 30 June 30 June 31 December ---------- ----------- ------------ 2006 2005 2005 ----------- ----------- ------------ (Unaudited) (Unaudited) (Audited) Basic 18 7 18 Diluted 17 7 18 Net income before founders' cash contribution to employees 37,056 13,690 35,669 =========== =========== =========== Denominator - basic Weighted average number of equity shares 206,924,493 200,000,000 200,000,000 =========== =========== =========== Number Number Number Denominator - diluted Weighted average number of equity shares 206,924,493 200,000,000 200,000,000 Weighted average number of option shares 7,747,512 - 510,542 ============ =========== =========== Weighted average number of shares 214,672,005 200,000,000 200,510,542 =========== =========== =========== NOTE 5 - SHAREHOLDERS EQUITY A. Share capital 30 June 30 June 31 December --------- ---------- ----------- 2006 2005 2005 --------- ---------- ----------- Authorized N/A(*) 200,000,000 200,000,000 ----------- ----------- ----------- Issued and fully paid 213,333,333 200,000,000 200,000,000 ----------- ----------- ----------- On 24 February 2006, the Company repurchased all of its 1,000,000 outstandingordinary issued shares of $0.01 par value and cancelled them. The existingshareholders then subscribed for and were issued and allotted by the Company,200,000,000 ordinary shares of no par value for an aggregate subscription amountof $10 thousands. (*) Following the IPO, which gave rise to additional paid in capital of $55,527thousand after issue costs, the Company has no authorized share capital but isauthorized under its memorandum and article of association to issue up to1,000,000,000 shares of no par value. B. Distribution of Dividend In March 2006, immediately prior to the IPO, the Company distributed $21,000thousand as dividend to its existing shareholders. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Playtech