25th Jul 2007 07:00
Playtech Limited25 July 2007 Playtech Limited ("Playtech" or "the Company") Second Quarter Trading Update Playtech (AIM: PTEC), the international designer, developer and licensor ofsoftware for the online and land-based gaming industry, announces today itstrading update for the second quarter and the first half of 2007. Financial Highlights (All 2006 revenues exclude contributions from the US unless otherwise stated) • Total revenues for the quarter were $24.2 million representing an increase of 22% on the $19.8 million achieved in Q1 2007 and an increase of 76% on the $13.8 million in Q2 2006: - Casino revenues totalled $17.4 million, an increase of 15% from $15.2 million in Q1 2007 and an increase of 46% from $11.9 million in Q2 2006; - Poker revenues totalled $6.3 million, an increase of 50% from $4.2 million in Q1 2007 and an increase of 288% from $1.6 million in Q2 2006. • Total revenues for H1 2007 were $44.0 million representing an increase of 80% compared to H1 2006: - Casino revenues increased by 53% compared to H1 2006 to $32.6 million; - Poker revenues increased by 275% compared to H1 2006 to $10.5 million. • Total revenues in Q2 2007 decreased by 5% from the $25.4 million in Q2 2006 (including contribution from the US): - Casino revenues decreased by 21% from $22.2 million in Q2 2006; - Poker revenues increased by 132% from $2.7 million in Q2 2006. Licensees In the first six months of 2007, Playtech has gained a total of 12 newlicensees, eight of which are Tribeca migrated licensees now successfullyoperating on Playtech's poker network, and which have contributed fully to theQ2 revenues. In addition, Playtech entered into four additional licenceagreements, one for the casino product, one for the poker product, one takingall current products available and the other catering to the Chinese market byoffering Playtech's p2p tournament product. Bingo and Casino Products Playtech's Bulgarian subsidiary continues to develop the bingo product. In May2007, Playtech launched a new version of bingo which significantly improved theplayer experience whilst upgrading the bingo engine and the back office tools.In July 2007, Playtech introduced a flash version of bingo, which was launchedwith three of its licensees. It is intended that this product will be fullydeployed with all bingo licensees in Q4 2007. Playtech continues to increase the range of games it offers to licensees, boththrough internal development and by licensing content from third party IP rightsholders. Geographical Analysis The Tribeca migrated licensees are focused on the European market, which hasresulted in strong European revenue growth in the second quarter. The Asianmarket has been stable during the second quarter. The restructuring of one ofthe Company's Asian licensees, as previously stated in the Q1 KPI announcement,is now mostly completed. Current Trading Playtech concluded a very positive first half of 2007. The Group's leadingposition in both the casino and poker software industry continues to attract newlicensees and this trend is expected to continue in the second half of the year.In addition, the Company's existing licensees are experiencing continued growth,which is being bolstered by the cross selling benefits available via Playtech'splatform. Since the beginning of Q3, the Group is experiencing growth across all businessareas and this trend is expected to continue, despite such quarter traditionallybeing a slow period for the online gaming industry. The Group also aims tofurther diversify its revenue stream through the introduction of its newproducts by the end of the year. Mor Weizer, Chief Executive Officer, commenting on the results, said today: "The first six months has been an outstanding period for the Group, with theaddition of 12 new licensees and growth experienced across all business areas.During the first half of 2007, Playtech gained a leading position with its pokeroffering and is now the world's largest independent poker network. Such aposition, alongside the Company's market leading casino offering will continueto attract new licensees in the second half of 2007. The Group continues toinvest in its new product pipeline in order to gain additional revenue streamsand to maximise cross selling opportunities to its existing and futurelicensees." Second Quarter Key Performance Indicators at 30 June 2007 Revenues - excluding contributions from the US Three months ended 30 June 30 June Change 31 March Change'000 ($) 2007 2006 2007Total Revenues 24,174 13,772 +76% 19,792 +22%Casino Revenues 17,430 11,918 +46% 15,215 +15%Poker Revenues 6,315 1,626 +288% 4,221 +50% Revenues - Actual numbers Three months ended 30 June 30 June Change 31 March Change'000 ($) 2007 2006 2007Total Revenues 24,174 25,411 -5% 19,792 +22%Casino Revenues 17,430 22,141 -21% 15,215 +15%Poker Revenues 6,315 2,723 +132% 4,221 +50% Geographical Diversity (excluding US) Relative Share of Geographical Diversity(1) Three months ended 30 June 30 June 31 March 2007 2006 2007Europe 71% 50% 65%Asia Pacific 20% 38% 24%Rest of the World 9% 12% 11% Nominal Change in Geographical RegionsPeriod Q2 2006 to Q2 Q1 2007 to Q2 2007 2007Europe +61% +33%Asia Pacific -20% 0%Rest of the World +9% +3% First Half Key Performance Indicators at 30 June 2007 Revenues - excluding contributions from the US Six months ended 30 June 2007 30 June Change'000 ($) 2006Total Revenues 43,966 24,474 +80%Casino Revenues 32,645 21,286 +53%Poker Revenues 10,536 2,808 +275% Revenues - Actual numbers Six months ended 30 June 2007 30 June Change'000 ($) 2006Total Revenues 43,966 46,178 -5%Casino Revenues 32,645 40,387 -19%Poker Revenues 10,536 4,813 +119% Geographical Diversity (excluding US) Relative Share of Geographical Diversity(1) Six months ended June 30 June 30 2007 2006Europe 68% 49%Asia Pacific 22% 39%Rest of the World 10% 12% Nominal Change in Geographical RegionsPeriod H1 2006 to H1 2007Europe +113%Asia Pacific -15%Rest of the World +28% (1) The relative share is calculated as the total players' income derived fromthe specific region divided by the total players' income from all regions - ends - Analyst Conference Call An analyst conference call has been organised for 9:30 am GMT today hosted bythe Chief Executive Officer, Mor Weizer. Dial-in number: +44 207 190 1596 Conference call title: Playtech KPI's 27.07.07 For Further Information: Mor Weizer, CEO, Playtech Ltdc/o Bell Pottinger Tel: 020 7861 3232www.playtech.com David Rydell / Peter OteroBell Pottinger Corporate & Financial Tel. 020 7861 3232 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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