Strong Q2 growth offsets Playtech poker decline 28/07/2010

Suzie Neuwirth

Playtech’s second quarter gross income climbed 2% on the previous quarter due to strong casino and bingo growth, compensating a 13% decline in poker revenue, the largest company on London’s AIM market announced this morning.

Gross income for the quarter totalled €44.5 million (£37m), up 34% on the same quarter the previous year, the Estonia-based online gaming software company said.

Total revenues were up 32% to €36.8m in Q2 last year, while poker revenue was down 13% to €7.3m. In a statement Playtech said this was due to “the seasonality effect” and the impact of the football World Cup.

Playtech had a particularly successful quarter in bingo, with revenue up 61% on the first quarter of this year to €2.8m, due to its acquisition of bingo supplier Virtue Fusion. Casino was up to €24.9m, 34% compared to Q2 2009 and 3% higher than the first quarter of this year.

Meanwhile Playtech’s deal with William Hill Online returned a profit of €7.6m, up 43% on last year and up 4% from the first quarter in 2010.

Half-year earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to be at least €53m.

The software firm also announced today that Snai and Eurobet have signed up to join its Italian bingo network. Both operators are already on Playtech’s Italian iPoker network.

Playtech's chief executive, Mor Weizer, said: “The second quarter's performance continues our strong start for the year and provides a solid base for the full year. Operationally we are well positioned with significant licensee wins such as RAY in Finland and the launch of our new Italian bingo and French poker networks bringing a broad range of well recognised local operators. 

“I am pleased by the continuing growth of Virtue Fusion and GTS and together they will help to mitigate the closure of the French casino market which will be felt in the second half of the year.”

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Posted: 28/07/2010