Worldwide gambling software services supplier Playtech has announced a 25% rise in its year-on-year profits for the first six months of 2017, ahead of many analyst expectations.
In its mid-year financial filing, the company reported group revenues of €421.6m, beating the previous total for the same period of 2016 by €83.9m. The companies’ adjusted net profit almost doubled, rising 60% from €78.3m in H1 2016 to €125.5m in the first half of 2017.
Strong financial performance in all business sectors has resulted in the company declaring a 19% rise in its earnings before interest, taxation, depreciation and amortisation (EBITDA), which rose from €143.8m in the first six months of 2016, to €170.9m for the same six months of 2017.
In a statement released with the figures, Alan Jackson, Chairman of Playtech commented on the company’s performance: “The proven strength of the Playtech model was once again demonstrated with a strong H1 performance driven by both underlying growth and recent acquisitions. As always, Playtech’s performance has been converted into strong cash generation enabling a 10% increase in the interim dividend, in line with the progressive dividend policy.”
The news comes a day after the company announced a potential $150m deal to expand its financial trading business with the purchase of intellectual property and clients from market maker and broker ACM Group. Under the terms of the deal, Playtech will pay $5m initially, potentially rising to $150m over the next three years.
Jackson added: “As with the Gaming Division, momentum in the Financials Division continued with improvements across all KPIs. The announced acquisition of assets from Alpha brings an important new B2B revenue stream and the creation of TradeTech Group as our operating and corporate brand for the business is an important milestone and better reflects the broadening of the division’s offering towards a full turnkey B2B financial trading solution.
Jackson added: “Taken all together, this proven platform for growth across the business has again delivered a strong performance and management remain confident of further strategic progress in the second half of 2017.”