10th May 2007 07:01
Playtech Limited10 May 2007 10 May 2007 Playtech Limited ("Playtech" or "the Company") First 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 first quarter of 2007. Financial Highlights •Total revenues were $19.8 million, representing an increase of 14% on the $17.4 million achieved in Q4 2006 and a decrease of 5% on the $20.8 million in Q1 2006 - Casino revenue totalled $15.2 million, an increase of 7% from $14.3million in Q4 2006 and a reduction of 17% from $18.3 million in Q1 2006 - Poker revenue totalled $4.2 million, an increase of 56% from $2.7million in Q4 2006 and an increase of 102% from $2.1 million in Q1 2006 •On a pro forma basis, which excludes royalty contributions from the US in 2006, total revenues increased by 22% compared to Q4 2006. Compared to Q1 2006 total revenues increased by 85%. Calculated on the same basis: - Casino revenue increased by 14% compared to Q4 2006 and increased by62% compared to Q1 2006 - Poker revenue increased by 64% compared to Q4 2006 and increased by257% compared to Q1 2006 Migration of Tribeca Licensees During March 2007 the migration of the Tribeca licensees onto the iPoker networkwas successfully completed, one month ahead of management expectations.Following this migration and internal growth of existing licensees, Playtech'siPoker network has more than doubled its number of players and has become one ofthe world's largest poker networks. Total revenue for the quarter included a contribution from the migratedlicensees during part of the last month of the quarter. Playtech's revenues fromthe migrated licensees are being generated both from the licensees' pokeractivity (rake) and their side games activity. The second quarter of the yearwill include a full three month revenue contribution from these licensees. A large portion of the migrated licensees have added the casino side games totheir poker clients thus creating an additional revenue stream which will bereflected in the Company's casino revenues going forward. Geographical Analysis The European segment has grown significantly over the past year and is expectedto continue to show further growth following the Tribeca acquisition and as aresult of internal growth from existing licensees. The slowing of the AsiaPacific segment is mainly attributed to the restructuring of one of theCompany's licensees, which is due to be completed by the end of the secondquarter. Current Trading Playtech has concluded a very positive first quarter of 2007 and this trend iscontinuing into the second quarter The Company expects that one of its existing licensees in the Asia Pacificregion will conclude its restructuring in the next couple of months. The Company continues to develop its land-based product through its Videobetdivision. Videobet has concluded the development of its server based, LAN andstand-alone terminals and continues to invest in expanding its games offeringportfolio to accommodate the requirement of the European, Asian and SouthAmerican markets. The Company expects additional growth through potential licensing deals whichare currently being negotiated with online operators. The recent regulatorychanges in various jurisdictions are creating significant business opportunitieswhich Playtech is actively pursuing. Mor Weizer, Chief Executive Officer, commenting on the results, said today: "Playtech has started the year extremely well and this is likely to continueinto the second quarter of the year. Recent changes across various regulatedmarkets are creating significant business opportunities for Playtech, which weare actively pursuing. We look forward to developing these opportunitiessupported by our strong focus on product innovation and development." First Quarter Key Performance Indicators at 31 March 2007 Revenues Three months ended 31 March 31 March Change 31 Dec Change '000 ($) 2007 2006 2006 Total Revenues 19,792 20,767 -5% 17,353 +14% Casino Revenues 15,215 18,246 -17% 14,255 +7% Poker Revenues 4,221 2,090 +102% 2,699 +56% Revenues - excluding contributions from the US Three months ended 31 March 31 March Change 31 Dec Change '000 ($) 2007 2006 2006 Total Revenues 19,792 10,702 +85% 16,257 +22% Casino Revenues 15,215 9,368 +62% 13,360 +14% Poker Revenues 4,221 1,182 +257% 2,579 +64% Geographical Diversity (excluding US) Relative Share of Geographical Diversity(1) Three months ended 31 March 31 March 31 Dec 2007 2006 2006Europe 65% 48% 57%Asia Pacific 24% 41% 30%Rest of the World 11% 11% 14% Nominal Change in Geographical RegionsPeriod Q1 2006 to Q1 Q4 2006 to Q1 2007 2007Europe +112% +33%Asia Pacific -8% -6%Rest of the World +49% -11% (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 9:00 am GMT today hosted bythe Chief Executive Officer, Mor Weizer. The dial-in details are: +44 (0)208 515 2352 Conference call title: Playtech KPI's For Further Information: Mor Weizer, CEO, Playtech Ltd c/o Bell Pottinger Tel: 020 7861 3232 www.playtech.com David Rydell / Helen Tarbet Bell 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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