Playtech partners drive H1 revenue increase

A strong performance from structured agreements led to Playtech growing its revenues by 18% year-on-year to €337.7m for the six months ended 30 June.

Casino accounted for a 52% majority of total revenue with €177m (+19%), followed by services with €76.5m (+3%), sport with €17.7m (+10%) and land-based with €15.5m (+3%).

Adjusted EBITDA climbed 27% to €143.8m, but adjusted net profit and reported net profit fell to €79.5m (-31%) and €48.8m (-42%) respectively.

Highlights of the period were the announced planned acquisition of games studio Quickspin AB for an initial payment of €24m in May and the completed acquisition of a 90% stake in fellow provider Best Gaming Techology (BGT) for €138m in July.

Playtech predicts the BGT acquisition will generate high single-digit earnings accretion in Playtech’s first full year of ownership.

Playtech CEO Mor Weizer said: “Our pipeline of opportunities remains strong, both organically and through M&A, which taken together with the future growth already locked-in provides us with confidence of strong growth in 2016 and beyond.”

An update for Q3 trading so far was provided, with average daily revenue in the gaming division for the first 55 days of the quarter being up 12%.

Weizer will be speaking to Gambling Insider about the results. The interview will be published later today (Thursday).