Playtech Casino & Gaming News 2007

[Newsflash]

02.01.2007

New Software Licensing Agreement With PartyGaming Plc ('PartyGaming')

Further to the statement issued by PartyGaming on Friday 29 December 2006 on
the acquisition of certain businesses and assets from both Empire Online
Limited ('EOL') and Intercontinental Online Gaming Limited ('Intercontinental'),
Playtech (AIM:PTEC) is pleased to announce that the Company has entered into
a new long term software licensing agreement with PartyGaming. This agreement
is subject to the successful completion of the above stated acquisition that
is currently seeking shareholder approval from EOL.

Under the terms of the four-year agreement, the online gaming websites currently
operated by EOL and Intercontinental will remain exclusively on the Playtech
platform. These websites will continue operating as usual and will also provide
the added advantage of cross-selling opportunities to the current PartyGaming
player database.

The online gaming websites operated by EOL and International that are being
acquired by PartyGaming include NoblePoker.com, Clubdicecasino.com,
EnterCasino.com, MissBingo.com, FairPoker.com and MagicBoxCasino.com.
In addition to this, PartyGaming will have access to the full range of
Playtech's casino, poker and bingo products.

Avigur Zmora, Chief Executive Officer of Playtech, commented:

"This agreement with PartyGaming is a real endorsement from the leading online
gaming company and we are delighted to have established this important
relationship. The fact that PartyGaming has chosen to continue operating these
sites on the Playtech platform is a clear indication of the market leading
position that our software holds. We believe that Playtech's software will
compliment PartyGaming's existing products whilst providing an additional route
to further revenue enhancement. We look forward to a long and successful
partnership with PartyGaming."

[Newsflash]

23.01.2007

Playtech secures first major move into land-based gaming market
Contract signed with subsidiary, Videobet and leading Mexican casino operator

Playtech (AIM: PTEC), the AIM listed international designer, developer and licensor of software for the gaming industry, announces today that its fully owned land-based subsidiary, Videobet has entered into a long-term licensing contract with leading Mexican casino operator, Entretenimiento De Mexico, S.A. De C.V. (“EMex”).

Under the terms of the three-year contract, EMex will add Videobet’s revolutionary server based gaming product to its existing and future gaming estates. In addition, EMex will be leveraging its land-based presence and the cross selling opportunities offered through other Playtech group products by offering online casino and mobile gaming to the entire Latin American market – a first for a Mexican casino group.

Emex is the single largest video-slot casino operator in the Mexican market with 12 gaming halls, in excess of 4,000 machines and 180,000 registered players.

Videobet successfully launched its product in August 2006. The comprehensive server-based gaming system features a captivating suite of 45 games, supported by a powerful real-time management back-end with dynamic content delivery and unparalleled control over the entire operation. It also provides significant cross-selling opportunities and synergies with Playtech’s online and mobile products.

Avigur Zmora, CEO of Playtech, said:
“This deal is the first significant step for our land-based offering, opening up a whole new market whilst complimenting and further strengthening our existing portfolio. This product provides a great opportunity for land based casino operators to diversify their offering and increase customer loyalty by cross selling to online and mobile products. We are delighted to be working with such a successful and established company in EMex and we believe that it will greatly benefit their players by offering a superior gaming experience coupled with unparalleled management control.

Arturo Rojas, CEO of Entretenimiento De Mexico, S.A. De C.V. said:
We are confident that our players are going to be delighted by the choice of being able to play their favourite game in either one of our land-based facilities, or on their home computer or other consumer electronic devices. With the addition of mobile gaming, Emex will possess a full-suite of gaming opportunities for our players; land-based, computer based, and mobile phone.

Our ongoing focus groups show that our players will enjoy the ability to utilize gaming entertainment from more places than just a casino floor. They will be able to enjoy from the comfort of their own home or while they wait to catch a flight at the airport. EMex has one of the largest bases of gaming clubs in the Republic of Mexico, possessing a registered player list of over 180,000 members, and we are excited about being able to expand into the online world in such a dramatic and complete way by using Playtech's technologies.


More on Playtech
Playtech develops unified software platforms for the online gambling industry, primarily targeting existing online operators wanting to upgrade their system; sportsbooks looking to diversify and land-based operators making their online debut. Playtech gaming applications — online casino, poker, bingo, mobile telephone gaming, live gaming, land-based kiosk networks and fixed-odds games — are fully inter-compatible and can be freely incorporated as stand-alone applications, accessed and funded by players through the same user account and managed by the operator by means of a single powerful management interface. Videobet is the land-based spin-off of Playtech's successful online platform that offers a comprehensive, server-based gaming system for land-based operators as well as stand-alone or local network casino floor machines. Founded in 1999, Playtech has over 300 personnel distributed globally, around eighty percent of whom are engaged in research and development of current and future gaming technologies. Website: www.playtech.com


More on Videobet
The Videobet Gaming Platform is fully compatible with all major payment processing devices, enabling easy integration with new and existing gaming terminals, and can be deployed at most locations from casinos to betting shops, hotel lobbies and cruise ships. The Videobet platform includes full support for peripheral devices from all leading OEM vendors, enabling easy integration with existing systems as well as new customer installations. Website: www.videobet.com

About Entretenimiento De Mexico, S.A. De C.V.
EMex ( Entretenimiento De Mexico, S.A. De C.V) is a Mexican based company with offices in Monterrey, Mexico. Emex, and its subsidiaries, currently have 12 locations operational throughout the country, serving over 2,500,000 players per year.
In the near-term, Emex and its partners plan to double the number of gaming clubs currently in operation by mid-2008. Long-term, EMex envisions that they will have over 15,000 machines in operation by the time the 2010 calendar year commences. The permits that EMex holds from the federal Secretaria de Gobernacion de Mexico are valid until 2030.

[Newsflash]

30.01.2007

Licensing Agreement

Playtech (AIM: PTEC), the designer, developer and licensor of software for the gaming industry, announces that it has entered into early stage negotiations with a pure Asian-facing gaming business regarding the award of a new licensing agreement. Owing to confidentiality agreements, the Company is not able to provide further comment at this stage and will update the market as and when appropriate.

[Newsflash]

28.02.2007

Maiden Preliminary Results for the Year Ended 31 December 2006
A strong performance in challenging market conditions

Playtech (AIM: PTEC), the designer, developer and licensor of software for the gaming industry, is pleased to announce its maiden preliminary results for the year ended 31 December 2006.

Financial Highlights:

Total revenues for the year up 89% to $90.1 million (2005: $47.6 million)
Casino revenues up 81% to $77.2 million (2005: $42.7 million)
Poker revenues up 309% to $10.9 million (2005: $2.7 million)


Pro forma revenues for the year, which excludes royalty contributions from the US, increased 143% to $55.6 million (2005: $22.8 million):
Casino revenues up 131% to $47.3 million (2005: $20.5 million)
Poker revenues up 386% to $7.4 million (2005: $1.5 million)

Adjusted net profit* after tax up 90% to $67.7 million (2005: $35.7 million)

Adjusted basic EPS* up 78% to 32 cents per share (2005: 18 cents per share)
Recommended Final Dividend of 7.0 cents per share making a total of approximately 15.7 cents per share for 2006.
Strong trading for January 2007:
Total royalties up 10% to $5.9 million (December: $5.4 million)
Casino royalties up 9% to $4.8 million (December: $4.4 million)
Poker royalties up 15% to $1.0 million (December: $0.9 million)
* In 2006 - excluding one time founders’ cash contribution and employee stock option expenses of $7.3 million.

Operational Highlights:

Acquisition of certain non-US assets of Tribeca Tables Europe Limited in November 2006, migration on track.
Fast expansion of development capabilities to support strong product pipeline and future growth of the Group:
Expansion of Estonian centre
Establishment of development centre in Bulgaria
Investment in the India and Philippines centres acquired from Tribeca

Substantial expansion into Asia – major software licensing agreement signed with China’s largest corporate retail gaming network, Sino Strategic International, coupled with new products for the Asian market
Expansion into land based gaming progressing well – licensing agreement signed with leading Mexican casino operator Entretenimiento De Mexico S.A. De C.V.
Avigur Zmora, Chief Executive of Playtech, said:

“We look forward into 2007 with great enthusiasm and expect it to be a year of further growth. Geographical expansion will be completed and supported by the development and improvement of our product portfolio, resulting in an increase in the number of revenue streams available to the Group. Our continuing commitment to our employees, who are the driving force behind Playtech’s success, will help increase the Group’s momentum and to further establish its position as the world’s leading supplier of software to the international gaming industry.”


Chairman’s Statement

As we approach the end of our first year as a publicly traded listed company, it gives me great pleasure to present the maiden set of preliminary results for Playtech Limited. The year has been filled with considerable challenges but the Group has risen to these challenges to prove the robustness and flexibility of its business model. The figures presented today are a credit to the management team and all those who work for the Company.

The results were impacted in the fourth quarter by the Group’s licensees’ complete withdrawal from the United States. Notwithstanding this action, I am pleased to announce that Playtech’s total revenues for the year were $90.1 million. This represented an increased of 89% on the $47.6 million achieved in 2005. Excluding contributions from the US, revenue for the year totalled $55.6 million, representing an increase of 143% on the $22.8 million in 2005. As a result of the strong performance, the Board is pleased to recommend a final dividend of 7.0 cents per share which will give a total dividend for the year of approximately 15.7 cents per share.

The passing of the US Unlawful Internet Gambling Enforcement Act 2006 was a watershed moment for the online gaming industry, forcing many gaming operators to make fundamental changes to their business models. The Group’s broad international portfolio of clients, especially in Asia and Europe, meant that the impact of the prompt withdrawal by its licensees from the Us market was greatly reduced.

Excellent progress has been made in developing Playtech’s strategy of diversifying its business portfolio - both geographically and by product. The Company announced two important deals during the year. The acquisition of certain non-US assets of Tribeca Tables Europe Limited (‘Tribeca’) pursuant to the conditional agreement signed in November 2006 will transform the Group into the world’s leading poker network and the landmark five-year software licensing agreement with Chinese based Sino Strategic International (‘SSI’) in December 2006, gives Playtech invaluable access to the huge Chinese gaming market. Playtech’s subsidiary Videobet also announced a long-term licensing contract to supply the Mexican land based gaming market through Mexican casino operator, Entretenimiento De Mexico S.A. De C.V. (‘Emex’) in January 2007.

The Group is also increasing the number of platforms through which its software can be delivered and both mobile phone gaming and Server Based Gaming (SBG) terminal products were added to its portfolio during the year. In terms of software product development, Pachinko and Mahjong were added to cater for the Asian market and a significant number of new gaming products are expected to be launched during 2007.

Playtech’s total commitment to the constant development of new products and solutions for the dynamic gaming industry is of central importance to today’s leading operators. The quality of Playtech's products and the professional way in which it conducts its business was further demonstrated by the signing of a new four year software licensing agreement with PartyGaming plc at the beginning of this year.

It is the Board’s firm view that there remains great potential for growth in the international gaming market and this sentiment is clearly reflected in Playtech’s continued commitment to expanding its employee base. Playtech has increased the numbers employed at its main software development and support base in Estonia has opened a new development centre in Bulgaria and is developing the newly acquired Tribeca operations in India and the Philippines. This will bring the Group’s total headcount to just under 450 employees.

In summary, the Board is very pleased with how Playtech has responded to the challenges and opportunities that it has been presented with over the past year. The Board looks forward to announcing further progress in newly entered growth markets, and other areas, over the following year. The development of multi distribution channels will also help the Group access more traditional gaming sectors, such as land based operators, in addition to offering considerable cross selling opportunities.

In summary, progress made during 2006 is very encouraging and trading in January this year is up 10% on December 2006. As a result, the Board looks forward to the coming year with both eagerness and confidence.

Roger Withers
Chairman



Chief Executive Officer’s Statement

I take great pleasure in delivering Playtech’s first set of annual results since the Company floated on the London Stock Exchange Alternative Investment Market in March 2006. It has been a year of both significant progress and change but overall I feel that this year has shown Playtech to be both a strong and adaptable Company with an outstanding business model.

2006 was a critical year for Playtech and the passing of the US Unlawful Internet Gambling Enforcement Act 2006 materially changed the landscape of the industry. Whilst it forced many gaming operators to radically change their business model to survive in the new international environment, it highlighted the great strength of Playtech as a software provider to the wider gaming industry and clearly vindicated the Board’s strategic decision made over three years ago to concentrate on geographical diversification. The Board’s prompt reaction to the changing US legal landscape has clearly illustrated Playtech’s ability to react quickly and effectively to changes in our dynamic industry. Playtech will continue to strengthen its portfolio through a highly active new product pipeline throughout 2007 coupled with a move into more international locations.


Review of Operations

During last year Playtech’s casino business grew by 81% (131% ex-US) and our poker business by 309% (386% ex-US). Stripping out US players, in 2006, 34% of Playtech’s player base came from Asia-Pacific and 52% from Europe, representing year on year growth rates of 102% and 178% respectively.

While the casino and poker streams of business remain our main revenue generator, Playtech continues to be committed to the development of its product portfolio. Mobile gaming and Server Based Gaming (SBG) terminals were added to the Company’s delivery platforms whilst Pachinko and initial versions of Mahjong were added to its games portfolio.

The mobile product that is already running on Playtech’s online platforms, offers players access to Playtech’s popular casino platform through their mobile phones and we expect that this will be a particularly successful cross selling opportunity for our existing licensees that already run Playtech’s online platforms.

Although online gaming has been enjoying extraordinary growth over the past few years, the more established land-based operators still hold approximately 95% of total global gaming activity. Playtech is well positioned to penetrate the SBG market as terminals become of growing importance to land-based operators. While traditional terminal suppliers will need to make significant investment to adapt to this new demand, Playtech has applied the technology used in its award winning online products to the SBG market and is now considered to be one of the market leaders in this arena.

All Playtech products are designed to allow the best cross selling opportunities in the market. Cross selling between land-based, online and mobile is easily done utilising a single account offering and a unified back office system. We expect it to be the main selling point of Playtech and Videobet products in the future. Such cross selling capabilities will result in better revenues for both Playtech and its licensees.


Contract Wins and Strategic Goals

During the final quarter of 2006, Playtech announced two very significant agreements, the first of which was the acquisition of certain non-US assets of Tribeca Tables Europe Limited (‘Tribeca’), announced in November 2006 and the second was a landmark five-year software licensing agreement with Chinese based Sino Strategic International (‘SSI’) announced in December 2006.

The migration of the Tribeca poker network onto the Playtech platform is expected to create the world’s largest shared liquidity pool in poker gaming and will, therefore, provide outstanding growth opportunities for the Group and its licensees. We expect the full completion of this deal, including the full integration of Tribeca’s highly skilled staff based in the Philippines and India, by the end of March 2007. From this date the acquisition is expected to be earnings enhancing and is in line with our strategy to be the leading software provider of all the products that we offer.

The Board is excited by the prospects for the Asian gaming market and is, therefore, fully committed to the development of its Asian games portfolio. Playtech’s license agreement with SSI will deliver its Peer to Peer (P2P) games to approximately 600 SSI gaming outlets throughout China. This is a significant deal for Playtech and provides the Company with an important gateway into a huge developing market. Coupled with our long-term focus to provide the right products to the Asian market, this agreement also further diversifies the Group’s geographical reach.

On 2 January 2007, Playtech announced a new long-term software licensing agreement with PartyGaming plc (‘PartyGaming’). Under the terms of the four-year agreement, Playtech will license its software to several PartyGaming branded websites on an exclusive basis. The Board sees this as a great opportunity to work with the leading online gaming company and is a real endorsement of the Playtech product. We believe that Playtech’s software will compliment PartyGaming’s existing products whilst providing an additional route to further revenue enhancement. We look forward to a long and successful partnership with PartyGaming.

On 23 January 2007, Playtech’s wholly owned subsidiary, Videobet entered into a long-term licensing contract with leading Mexican casino operator, Entretenimiento De Mexico, S.A. De C.V. (‘EMex’). Under the terms of the three-year contract, EMex will add the Videobet server based gaming product to its existing and future gaming estates. This deal is the first significant step for Playtech’s land-based offering, and is consistent with the Company’s strategy to leverage its expertise into the lucrative land-based market.


Site Development and Expansion

Playtech is fully committed to the development and delivery of market leading software products to the international gaming sector. In order to achieve this, the Company is continually strengthening its development capabilities and as a result improving delivery time to market. In addition to the development centre in Estonia, which is the centre for casino, poker and SBG products, Playtech has opened a new development centre in Bulgaria that will be primarily focused on the Company’s bingo products.

The agreement with Tribeca provides Playtech with an opportunity to develop Tribeca’s centres in India and the Philippines. This will not only offer the clear geographic advantage of delivery into the fast growing Asian markets but will also help in the production and development of Asia specific gaming products that are increasingly being demanded by our licensees. We extend a warm welcome to our new employees and look forward to working with them to supply the Asian market with the best and most relevant products.

A review of the successes achieved this year would not be complete without mentioning the outstanding contribution made by our employees. Playtech’s reputation is built on the quality of its people and while the sector as a whole was forced to reduce manpower due to changes in the US landscape, Playtech continued to expand its workforce. This has allowed the Company to maintain the flexibility for which it has become renowned for and to meet with licensee requirements, product development and client production. We passionately believe in investing in our people and this commitment will ensure our growth throughout 2007.
On behalf of the Board, I would like to extend my thanks to all our employees for their tremendous efforts throughout 2006 and look forward to making 2007 an even better year for Playtech.


Current Trading and Outlook

The 2007 year has started strongly, with January royalties up 10% to $5.9 million on the previous month. Of this, casino royalties are up 9% to $4.8 million and poker royalties are up 15% to $1.0 million.

In the first half of 2007, Playtech is on track to launch a number of P2P games exclusively for the Asian market, including Cho Dai Di and Do Di Dzho. These will be added to our existing suite of poker games and will help the Group further build its presence in Asia.

With Playtech increasing the ways in which it can deliver its gaming software, through, for example mobile phones and terminals, further growth can be expected through the cross selling opportunities that this presents.

We have quickly established a market leading position in the SBG market, the technology of which is based on Playtech’s outstanding online gaming software. All evidence points towards the fact that SBG will play an increasingly important role in the international gaming market and Playtech is in an ideal position to take advantage of the growth opportunities that this offers. The deal with EMex illustrates this well and other similar deals will no doubt follow this year.

Playtech is also developing its centre in Bulgaria as a dedicated resource for the development of its exiting Bingo product. Previously, this game did not represent an important part of Playtech’s gaming portfolio but our research suggests that an improved Bingo product, coupled with the right level of support will create a revenue stream that is much more meaningful to the Group.

We look forward into 2007 with great enthusiasm and expect it to be a year of further growth, both geographically and through new product development. Our continuing commitment to our employees, who are the driving force behind Playtech’s success, will help increase the Group’s momentum and further establish its position as the world’s leading supplier of software to the international gaming industry.

Avigur Zmora
Chief Executive Officer



Financial Review

Playtech is pleased to announce the financial results for the year ended 31 December 2006, our maiden set of preliminary results as a publicly quoted company. Given the challenges faced by the Group, Playtech has registered an extremely robust performance. This was despite the results in the final quarter of the year being affected by the complete and immediate withdrawal from the United States following the passing of the US Unlawful Internet Gambling Enforcement Act 2006.

Total revenues for the year were $90.1 million which represented an increase of 89% on the $47.6 million achieved in 2005. Casino revenues for the year totalled $77.2 million, an increase of 81% from $42.7 million in 2005. Poker revenues for the year totalled $10.9 million, an increase of 309% from the $2.7 million in 2005.

On a pro forma basis, which excludes contributions from the US, revenues for the year totalled $55.6 million, representing an increase of 143% on the $22.8 million in 2005. On the same basis, casino revenues for the year totalled $47.3 million, an increase of 131% from the $20.5 million in 2005. Poker revenues for the year totalled $7.4 million, an increase of 386% from the $1.5 million in 2005.

The last quarter of 2006, which is traditionally a strong quarter, was materially affected by the complete and immediate withdrawal from the United States. Total revenue were $17.4 million which represented an increased of 13% on the $15.3 million in the last quarter of 2005. Casino revenues for Q4 2006 totalled $14.3 million, an increase of 5% from $13.5 million in Q4 2005. Poker revenues for the year totalled $2.7 million, an increase of 116% from the $1.2 million in Q4 2005.

Excluding contributions from the US, revenue for Q4 2006 totalled $16.3 million, representing an increase of 110% on the $7.8 million in Q4 2005. On the same basis, casino revenues for Q4 2006 totalled $13.4 million, an increase of 98% from the $6.8 million in Q4 2005. Poker revenues for Q4 2006 totalled $2.6 million, an increase of 239% from the $0.8 million in Q4 2005.

Net profit after tax for 2006 was $60.4 million, an increase of 69% over 2005. Adjusted net profit* after tax, for 2006 was $67.7 million, an increase of 90% over 2005. The adjusted EPS* for the year, based on weighted average shares outstanding of 210,168,682, is 32 cents per share compared to the prior year which was 18 cents per share. Fully diluted EPS* for 2006 was 31 cents per share compared to 18 cents per share in 2005.

The Group's operating profit margin was influenced by the provision of a one-time cash contribution from the founders of the Company to Playtech's employees in the first half of the year, amounting to $6.6 million and employee stock option expenses amounting to $0.7 million. The provision for this was accounted for in accordance with generally accepted accounting principles and did not have any cash impact on the Company. In addition, the operating profit was influenced by the reduction in revenue contribution from our licensees' US players in the fourth quarter of 2006. Excluding cash contribution and employee stock option expenses, the operating profit margin decreased to 72% from 75% in 2005.

*In 2006 - excluding one time founders cash contribution and employee stock option expenses of $7.3 million.


Cost of Operations

As Playtech's business has grown, the Group has significantly increased its number of employees, which included further hiring by our Estonian and Israeli operations and the formation of a new R&D subsidiary in Bulgaria. Furthermore, we have incurred additional cost associated with becoming a publicly traded company. As a result, cost of operations during 2006, excluding the founders' cash contribution and employee stock option expenses, increased by 112% to $25.6 million compared to $12.1 million in 2005.

Given the Board's expectation about the Company's prospects in 2007, the withdrawal of Playtech's licensees from all their US facing activity had little or no impact on costs nor did it require any restructuring of the cost base.

Operating activity is mainly conducted in Estonia through two of our subsidiaries. Operating expenses were $9.1 million, representing an increase of 94% over 2005, although, operating costs remained at the same percentage of revenue as 2005.

Sales and Marketing expenses were $8.8 million, representing an increase of 62% on 2005. This was mainly as a result of salary increases attributable to the recruitment of sales staff, an increase in reseller fees that are paid as a percentage of revenue and an increase in the number of trade shows attended during the year.

Development costs increased by 46% on the previous year to $1.5 million. These costs are associated with investment into the improvement of existing products. The cost of new products are capitalised and amortised as part of the operating
expenses when they are launched.

General and administrative expenses, before the founders' one time cash contribution to employees, were $6.3 million, an increase of 568% over 2005.

In line with generally accepted accounting principles, the founders' one time cash contribution to employees of $6.6 million is included as a one-time expense under General and Administrative expenses. Due to the fact that this contribution is fully payable by the founders' trust directly to employees, there is no cash impact on the Group. Employee stock option expenses in 2006 amounted to $0.7 million.


Financial Income and Taxation

Cash is generally held in short-term US dollar deposits. Such deposits have generated in 2006 a financial income of $3.6 million.

Only the Bulgarian and Israeli subsidiaries have a taxable income, which is charged on a cost plus basis. Following an agreement signed with the Israeli Tax Authorities during 2006, the Israeli subsidiary paid $0.2 million in back taxes.


Dividend

The Board has recommended a final divided of 7.0 cents per share. Once approved and paid, this will give an aggregate dividend for the 2006 year of approximately $33.5 million or approximately 15.7 cents per share.

During 2006 the Company paid dividends to the amount of $39.5 million, of which $21 million was paid prior to the admission onto the Alternative Investment Market as a final dividend for 2005. $18.5 million was paid as an interim
dividend in October 2006.


Balance Sheet

Cash and cash equivalents as at 31 December 2006 amount to $101.4 million, representing 87% of the balance sheet (2005: 72%)

The trade receivables balance as at 31 December 2006 represents mainly amounts due by licensees for the month of December 2006.

Intangible assets mainly consist of patent and intellectual property rights and development costs of new products such as the Poker platform, mobile platform, and the Videobet product. The development of Mahjong and other Asian games is also included under this section.


Cash Flow

The Group generated cash of $72.6 million of cash in 2006 from operating activities (2005: $35.2 million).

The Group's cash usage in investing activities was $6.5 million (2005: $1.0 million), which was mainly accounted for capitalised development costs capitalised relating to the Videobet, mobile and Mahjong products and the acquisition of fixed assets.

The Group's financing activities generated $17.2 million from net IPO proceeds of $56.2 million, less the dividend payment to shareholders of $39.5 million. In 2005 the usage amounted to $27.5 million that mainly related to the repayment of shareholders' loans and dividend payment.


Acquisition

In November 2006 Playtech signed an agreement to acquire certain non-US assets and undertakings of Tribeca Tables Europe Limited ('Tribeca'). The consideration for this acquisition is calculated according to a formula based on Playtech's earnings from the acquired assets. For example if the annualised revenue generated from this acquisition, over the measurement period is $16.0 million, the consideration to be paid to Tribeca will be approximately $75.0 million. The final consideration will be adjusted upon Playtech's realised revenues. The maximum consideration that the Company will be liable to pay is $139.0 million, which will be paid in the event that the annualised revenue generated from the acquisition, over the measurement period, exceeds $29 million. The consideration is not subject to any minimum amount. The Tribeca assets acquisition will be accounted for in the financial statements of 2007.

Shuki Barak
Chief Financial Officer


NON CASH TRANSACTIONS
In 2005 a loan to shareholders of 27,905 was cleared by a dividend


1. Basis of preparation

The preliminary results do not constitute statutory accounts. The financial
information for the year ended 31 December 2006 is extracted from the Group's
unaudited financial statements to that date. The financial information for the
year ended 31 December 2005 is extracted from the Group's statutory financial
statements to that date, which received an unqualified audit report.


2 . Accounting policies

The preliminary results of Playtech Limited and all its subsidiaries have been
prepared in accordance with International Financial Reporting Standards (IFRSs).
These preliminary results have been prepared on the basis of accounting policies
followed in the preparation of the Group's annual financial statements for the
year ended 31 December 2005.


3. Earnings per share

Earnings per share have been calculated using the weighted average number of
shares in issue during the relevant financial periods. The weighted average
number of equity shares in issue and the earnings, being profit after tax are as
follows:



5. Capital commitment


On 13 November 2006, the Company signed a non US asset purchase agreement with
Tribeca Tables Europe Limited ("Tribeca"), a software designer that provides a
poker network solution to a number of the world's most respected online poker
operators. According to the agreement, the entire Tribeca network will cease its
operations in six months from the date of the agreement, by which time the
migration of the online poker operators to Playtech's platform is planned to be
complete. The consideration for the acquisition is calculated according to a
formula based on the future earnings from the acquired assets. The final
consideration will be adjusted upon Playtech's realized revenues. The maximum
consideration that the Company will be liable to pay is $139 million, which will
be paid in the event that the annualised revenue generated from this
acquisition, over the measurement period, exceeds $29 million. The Company will
pay the consideration in cash in four instalments. The first is payable upon
satisfaction of specific conditions. The second, third and fourth payments are
to be made on the 9th, 18th and 24th month intervals, after the date of the
agreement, respectively. As of the date of this report the conditions have not
yet been satisfied and the Company has not accounted for this acquisition in the
year ended 31 December 2006.

This information is provided by RNS
The company news service from the London Stock Exchange

[Newsflash]

07.03.2007

Contract Signed with Foundation Group Ltd
Contract signed with Foundation Group Ltd, Agreement to supply P2P Gaming in China

Further to Playtech’s previous announcement with reference to early stage negotiations with a pure Asian-facing gaming business, the Company is pleased to announce today that it has signed a contract with Foundation Group Limited (“Foundation Ltd”) to supply Peer to Peer (P2P) gaming software within China.

Foundation Ltd is a listed company in Hong Kong and is a new venture, whose subsidiary, has recently signed licensing agreements with an operating arm of the Communist Youth League (CYL). CYL is responsible for the implementation of China’s ‘Green Internet Policy” so as to provide duly licensed play for cash prizes P2P tournament games via internet cafés situated throughout China.

Foundation Ltd is currently undertaking a fund raising exercise. Further details of the company’s plans are therefore restricted at this stage. It is intended that Playtech will give a further update regarding this contract sometime later this month.

This is the second contract that Playtech has signed to supply the Chinese market in the past three months and the first nationwide contract of this nature.

Avigur Zmora, Chief Executive Officer of Playtech, commented today:

"Although Foundation Ltd is in the very early stages of its development, its potential is very exciting for Playtech and we look forward to working closely with Foundation to develop this potential.”

[Newsflash]

08.03.2007

Playtech Signs Landmark Sponsorship Agreement with the China Mahjong Association
Playtech Signs Landmark Sponsorship Agreement with the China Mahjong Association

Playtech (AIM:PTEC), the designer, developer and licensor of software for the gaming industry, is delighted to announce that Playtech has been selected as the exclusive sponsor of the China Mahjong Association (“CMA”), under a three year agreement. Under the deal, Playtech will also act as the exclusive software provider to the CMA.

As part of the agreement, Playtech will be sponsoring the CMA’s national championship and the quarterly held regional championships. These events will be renamed the “Playtech China Mahjong King Championship” and “Playtech China Regional Mahjong Finals” respectively. The Company will also sponsor the CMA World Mahjong Championships timetabled to be held in China later this year.

This agreement is part of Playtech’s integrated marketing strategy of strengthening the Group’s leadership position in the Asian gaming market. The benefits of growth in Asia will complement and reinforce Playtech’s wider operational strategy of developing multi-lingual websites and customer support on an international basis.

This sponsorship deal follows the recent agreement signed with China’s leading gaming group Sino Strategic International (“SSI”), announced in December 2006. Playtech is therefore well positioned to develop its brand presence into lucrative Asian markets such as China, where Mahjong is the country’s most popular game. In addition, working with the CMA compliments the newly announced contract with Foundation Group Limited (“Foundation Ltd”) and further reinforces Playtech’s involvement in the Chinese Peer to Peer (P2P) market.

Tom Hall, President of Playtech’s Asia Pacific Operations, commented today:
“The CMA is an accredited Government body and we are delighted to be supporting the Association to promote the world wide growth of Mahjong games. The CMA’s unrivalled knowledge of the Mahjong gaming community coupled with Playtech’s world leading technology makes for a winning partnership, and we look forward to a long and profitable relationship. This sponsorship agreement clearly illustrates Playtech full commitment to developing the considerable growth potential of Asian gaming market.”

Mr Sheng Qi, Chairman of the CMA, added:
“We are very happy to have Playtech sponsor the CMA’s activities. Their considerable financial support will allow us to better manage our numerous tournaments and educate people about the great game of Mahjong, which has long been part of Chinese gaming culture. We chose Playtech over other potential sponsors as they demonstrated an outstanding knowledge of Mahjong, of China and its regulatory framework and had existing extensive Asian and Chinese support operations already in place. In addition, they will also be supportive in technology matters, which are extremely useful given our drive to take full advantage of the internet and new educational and promotional tools.”


China Mahjong Association
“Chinese Mahjong Exercise United General Association” is the registered company of “China Mahjong Association” (“CMA”).

Mr Sheng Qi started the CMA in the 1990’s with a group of other enthusiasts and is regularly referred to as the ‘Grandfather of Mahjong’. He was the leader of the regulations team that created the Official Rules of Mahjong and is credited in the official rule book published and distributed by The China Ministry of Sports. The CMA further expanded its operations in 2003 by registering a Hong Kong Company to overcome Chinese laws that restrict the use of the word “Majiang” or “Mahjong” as part of the company name. He also formally established the CMA’s headquarters in Tianjin, China.

During the lifetime of its operations, the CMA has established 23 chapters around China covering 20 provinces and encompassing over 47,000 members, 40% of these are under the age of 40. The local chapters include Tianjin, Beijing, Qingdao, Taiyuan, Zhengzhou, Neimeng, Ningbo, Guangxi, Guangzhou, Changsha, Xinjiang, Jinan, Nanjing, Liaoyang, Xian, Haerbin and Jiexiu. Each chapter requires a license to operate from the China Civil Administration Bureau and China Sports Bureau. 60% of the membership base is comprised of government officials and company leaders including the Chairman of the China Sports Bureau. The CMA has held over 100 tournaments across China.


Playtech Limited
Playtech develops unified software platforms for the online gaming industry, primarily targeting existing online operators wanting to upgrade their system; sports books looking to diversify and land-based operators making their online debut.

Playtech gaming applications include online casino, poker, bingo, live gaming, land-based kiosk networks, mobile, fixed-odds games and video betting terminals.

Founded in 1999, Playtech has just under 450 employees located globally.

The Company listed on the AIM market in March 2006.

[Newsflash]

12.03.2007

Completion Of The Migration Of The Tribeca Poker Network Onto The Playtech Platform

Playtech (AIM: PTEC), the listed international designer, developer and licensor of software to the gaming industry, today announces an operational update following the acquisition of certain non-US assets and undertakings of Tribeca Tables Europe Limited ('Tribeca') on 13 November 2006.

Playtech is pleased to announce that the migration of the Tribeca and Tain poker networks onto Playtech's network has now been completed, a month ahead of initial management expectations.

Playtech is delighted to note that within the last 5 months, the number of concurrent players during peak time has increased from 8,400 to over 20,000 players post migration.

In addition to the poker royalties that Playtech will receive from its enlarged poker network, it should be noted that the Group has been successful in cross selling side casino games to a number of the poker licensees which will result in an additional revenue stream.

The acquisition significantly strengthens Playtech's share of the global online poker gaming market and is in line with the Company's continued strategy to diversify its portfolio and geographical reach making it the World's leading poker network.

[Newsflash]

01.05.2007

Playtech to Enlarge its Casino Games Package

Playtech (AIM:PTEC), the designer, developer and licensor of software for the gaming industry, announces the release of three brand new games to its casino games package. The three new games are in addition to the expanded introduction of the progressive side game Dollar Ball to all of Playtech’s non-progressive 5-reel video slots games. The new games are slated to be released to all Playtech licensees in the coming weeks.

Playtech’s latest games release includes the state of the art Alien Hunter, a 5-reel 25-line video slots games based on a Sci-Fi theme and featuring three different bonus rounds. Alien Hunter boasts Playtech’s first ever Skill Based bonus round which lets players test their shooting skills by capturing aliens that appear randomly on the screen, with the player’s performance determining the size of the bonus prize. Thrill Seekers, another addition to Playtech’s casino games package, is based on amusement park themed animation and makes use of an animated splash screen. Thrill Seekers is Playtech’s first 50-line video slots game and utilizes a new game layout of four visible reel positions per reel to accommodate the multiple payline combinations. The third new game, Football Rules, is a 5-reel 25-line video slots game is themed around the sport Football, an extremely popular sport accepted throughout the world. The game features a penalty shot bonus round in which free spins and win multipliers for all wins accumulated during free spins are the prizes. The last addition to the casino games package is the integration of the Playtech-patented progressive side game Dollar Ball into all of Playtech’s non-progressive 5-reel video slot games.

Avigur Zmora, Playtech CEO commented: “We are very pleased with Playtech’s latest additions to its casino games package as this release is in line with our efforts to provide our licensees with an enhanced casino gaming package. Each of the games was developed in the best of Playtech tradition according to the needs and requests of our licensees and their clients and reflects Playtech’s efforts to release more games in greater frequency.”

[Casinonews]

10.05.2007

First Quarter Trading Update
Playtech Limited ("Playtech" or "the Company") First Quarter Trading Update

Playtech (AIM: PTEC), the international designer, developer and licensor of
software for the online and land-based gaming industry, announces today its trading 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 $14.3
million 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 $2.7
million 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 by
62% compared to Q1 2006

- Poker revenue increased by 64% compared to Q4 2006 and increased by
257% compared to Q1 2006


Migration of Tribeca Licensees

During March 2007 the migration of the Tribeca licensees onto the iPoker network was successfully completed, one month ahead of management expectations. Following this migration and internal growth of existing licensees, Playtech's iPoker network has more than doubled its number of players and has become one of the world's largest poker networks.

Total revenue for the quarter included a contribution from the migrated
licensees during part of the last month of the quarter. Playtech's revenues from the migrated licensees are being generated both from the licensees' poker activity (rake) and their side games activity. The second quarter of the year will include a full three month revenue contribution from these licensees.

A large portion of the migrated licensees have added the casino side games to their poker clients thus creating an additional revenue stream which will be reflected in the Company's casino revenues going forward.


Geographical Analysis

The European segment has grown significantly over the past year and is expected to continue to show further growth following the Tribeca acquisition and as a result of internal growth from existing licensees. The slowing of the Asia Pacific segment is mainly attributed to the restructuring of one of the Company's licensees, which is due to be completed by the end of the second quarter.


Current Trading

Playtech has concluded a very positive first quarter of 2007 and this trend is continuing into the second quarter
The Company expects that one of its existing licensees in the Asia Pacific region will conclude its restructuring in the next couple of months.

The Company continues to develop its land-based product through its Videobet division. Videobet has concluded the development of its server based, LAN and stand-alone terminals and continues to invest in expanding its games offering portfolio to accommodate the requirement of the European, Asian and South American markets.

The Company expects additional growth through potential licensing deals which are currently being negotiated with online operators. The recent regulatory changes in various jurisdictions are creating significant business opportunities which 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 continue
into the second quarter of the year. Recent changes across various regulated markets are creating significant business opportunities for Playtech, which we are actively pursuing. We look forward to developing these opportunities supported by our strong focus on product innovation and development."

First Quarter Key Performance Indicators at 31 March 2007

Revenues




Revenues - excluding contributions from the US




Geographical Diversity (excluding US)

Relative Share of Geographical Diversity (1)
Three months ended 31 March 31 March 31 Dec

2007 2006 2006
Europe 65% 48% 57%
Asia Pacific 24% 41% 30%
Rest of the World 11% 11% 14%


Nominal Change in Geographical Regions

Period Q1 2006 to Q1 Q4 2006 to Q1
2007 2007
Europe +112% +33%
Asia Pacific -8% -6%
Rest of the World +49% -11%

(1) The relative share is calculated as the total players income derived from
the specific region divided by the total players income from all regions

Analyst Conference Call

An analyst conference call has been organised for 9:00 am GMT today hosted by the 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
http://www.playtech.com

David Rydell / Helen Tarbet
Bell Pottinger Corporate & Financial
Tel: 020 7861 3232

[Newsflash]

11.06.2007

Agreement signed with Guardian Gaming and Shuffle Master
Playtech Ltd. ("Playtech" or "the Company")

Agreement signed with Guardian Gaming and Shuffle Master Playtech (AIM: PTEC), the international designer, developer and licensor of software for the online and land-based gaming industry, announces today that it has signed an intellectual property sublicence agreement with Guardian Gaming Limited ("GG") and Shuffle Master. GG is a Malta Corporation which has the exclusive rights to sublicense certain Shuffle Master proprietary games for use on the internet in certain jurisdictions. This agreement will enable Playtech to offer to its software licensees, Shuffle Master's highly popular and successful casino games, Three Card Poker®, Dragon Bonus®, Let it Ride®, Fortune Pai Gow Poker®, Casino War®, and Ultimate Texas Hold 'EmTM (together the "Shuffle Master Games") in certain jurisdictions.

In addition, Playtech has been chosen by GG to be the exclusive supplier of online casino software utilising the Shuffle Master Games for the Shuffle Master online casino site which is operated by GG.

Playtech is the first online gaming software provider to obtain a sublicense to the Shuffle Master Games for internet use and further enhances Playtech's position in the market as the gaming software supplier of choice for regulated entities and markets.

These games will be offered to Playtech's gaming operators worldwide as part of Playtech's portfolio for use outside of the US and such use will not in any way contravene the Internet Gambling Enforcement Act 2006.

Mor Weizer, Chief Executive Officer of Playtech, commented today:

"We are delighted to have reached this agreement which places Playtech in the unique position of being the online gaming software provider for the Shuffle Master online casino, holding the sublicense rights to certain Shuffle Master games for our operator licensees. The agreement reflects the quality of Playtech's software platforms and the strength of our global licensing portfolio."

More on Shufflemaster

Shuffle Master, Inc. (NASDAQ Global Select Market: SHFL) is a gaming supply company specyclopcasinoing in providing its casino customers Utility Products, including automatic card shufflers, roulette chip sorters and intelligent table system modules, to improve their profitability, productivity and security, and Entertainment Products, including live proprietary table games, electronic multi-player table game platforms, traditional video slot machines for select markets, live table game tournaments and wireless gaming solutions to expand their gaming entertainment content. The Company is included in the S&P Smallcap 600 Index. Information about the Company and its products can be found on the
Internet at www.shufflemaster.com

More on Guardian Gaming

Guardian Gaming, Ltd., a Maltese International Trading Company, commercyclopcasinoes proprietary and specialty casino games into the online gaming industry, under exclusive license from the owners of these games. Guardian Gaming will launch its online casino at www.ShuffleMasterlive.com during June, 2007, featuring certain proprietary games of ShuffleMaster, Inc., and the Playtech operating system. The Shuffle Master Live portfolio will include four of the top five authentic and proprietary casino table games in the world, including Three Card PokerTM©, Ultimate Texas Hold'emTM ©, Casino WarTM© and Let it Ride TM©. Guardian Gaming works closely with gaming regulatory entities to ensure delivery of its products meet the necessary regulatory and legal requirements surrounding the online gaming markets.

Guardian Gaming has the exclusive online rights to sublicense Shuffle Master Games to third parties in jurisdictions where it is not illegal for players to participate in one-line gaming. For more information regarding Guardian Gaming and its products please contact Andrew McGreer, CEO via email at: andrew@guardiangaming.com