25.07.2007
Second Quarter Trading Update
Playtech Limited ("Playtech" or "the Company") Second Quarter Trading Update
Playtech, the international designer, developer and licensor of software for the online and land-based gaming industry, announces today it's trading 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 new licensees, eight of which are Tribeca migrated licensees now successfully operating on Playtech's poker network, and which have contributed fully to the Q2 revenues. In addition, Playtech entered into four additional licence agreements, one for the casino product, one for the poker product, one taking all current products available and the other catering to the Chinese market by offering Playtech's p2p tournament product.
Bingo and Casino Products
Playtech's Bulgarian subsidiary continues to develop the bingo product. In May 2007, Playtech launched a new version of bingo which significantly improved the player experience whilst upgrading the bingo engine and the back office tools. In July 2007, Playtech introduced a flash version of bingo, which was launched with three of its licensees. It is intended that this product will be fully deployed with all bingo licensees in Q4 2007.
Playtech continues to increase the range of games it offers to licensees, both through internal development and by licensing content from third party IP rights holders.
Geographical Analysis
The Tribeca migrated licensees are focused on the European market, which has resulted in strong European revenue growth in the second quarter. The Asian market has been stable during the second quarter. The restructuring of one of the 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 leading position in both the casino and poker software industry continues to attract new licensees 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's platform.
Since the beginning of Q3, the Group is experiencing growth across all business areas and this trend is expected to continue, despite such quarter traditionally being a slow period for the online gaming industry. The Group also aims to further diversify its revenue stream through the introduction of its new products 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 the addition of 12 new licensees and growth experienced across all business areas. During the first half of 2007, Playtech gained a leading position with its poker offering and is now the world's largest independent poker network. Such a position, alongside the Company's market leading casino offering will continue to attract new licensees in the second half of 2007. The Group continues to invest in its new product pipeline in order to gain additional revenue streams and to maximise cross selling opportunities to its existing and future licensees."
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