Playtech Plc (LON:PTEC) today announced its results for the six months ended 30 June 2018, together with a trading update for the period to 21 August 2018.
Group financial highlights
* Total revenues excluding Asia up 35% vs H1 2017 on a reported basis
* 69% of group revenues were regulated in H1 (H1 2017: 50%)
– c. 80% regulated revenues FY 2018 at current run rate
* Continued progress on balance sheet efficiency with sale of holding in Ladbrokes-Coral & GVC
* Strong cash generation: net cash from operations up 51% to €222.5 million
* Interim dividend per share sustained at 2017 level
Snaitech acquisition
* Completion of Snaitech acquisition; consolidated from 5 June;
* 100% owned from 3 August
* Delivers cornerstone presence in Europe’s largest regulated market by GGR
* Leading brand well placed for regulatory changes
* Integration complete & cost synergy target reaffirmed
Operational highlights
B2B Gaming Division
* Regulated Gaming revenues of 53% (H1 2017: 38%)
* Organic growth in regulated B2B Gaming revenue 16% at constant currency
* Playtech BGT Sports continues to win new clients and deliver growth
– 27% growth in revenue
– 8% growth in retail machine footprint globally
* New licensee wins in key markets
– Gala Leisure Buzz Bingo UK omni-channel deal
– Casino: Polish National Lottery Totalizator
– Sports: SAS in Portugal, Sportium in Columbia
* Pipeline strong across key geographies
* GVC negotiations progressing to benefit of both parties
B2C Gaming Division
* Snaitech consolidated from 5 June 2018
* Sun Bingo 28% revenue growth at constant currency
TradeTech Group
* 16% revenue growth to €52.3m and 58% Adjusted EBITDA growth to €25.2m
* Momentum continued in the Financials Division with further improvement in KPIs
Current trading and outlook
* Average daily revenue in the B2B Gaming Division for the first 52 days of Q3 2018 was down 13% on the same period in Q3 2017 (down 14% at constant currency and excluding acquisitions)
* Excluding Asia, average daily revenue in the B2B Gaming Division for the first 52 days of Q3 2018 was up 6% on the same period in Q3 2017 (5% at constant currency and excluding acquisitions)
* Snaitech saw a strong performance at the start of H2 2018 driven by the closing weeks of the World Cup following which the business has continued to trade in line with our expectations
* B2C gaming excluding Snaitech is performing in line with expectations with the Sun Bingo contract continuing to see revenue momentum
* TradeTech’s positive momentum reported for the first half of 2018 has continued into the second half, with the B2B division continuing to deliver a strong performance in line with management’s strategy
Alan Jackson, Chairman of Playtech plc, commented: ‘Playtech has had an extremely busy first half of the year with important operational progress and new licensee wins in key strategic markets, the UK, Europe and Latin America. This continued progress is resulting in higher quality earnings for Playtech with Group revenue now 69% regulated. Following headwinds in Asia and a full year contribution from the landmark Snaitech acquisition, regulated revenue at current run rate is expected to be c. 80% in 2018.
This progress is marked against the disappointing market conditions in Asia. However, it should be noted the headwinds in the Asian market are not reflective of the core strength of the Playtech model as the regulated segment continues to report organic growth and encouraging momentum.
Looking to the future, the delivery of the Snaitech acquisition in the period has not only delivered geographical diversification of the Group’s revenue profile but more importantly delivered a cornerstone presence in the largest, and one of the fasted growing gambling markets in Europe.’
