A Good First Half For Playtech
Published: Tuesday, September 04, 2007 Online-Casinos.com
A GOOD FIRST HALF FOR PLAYTECH
Revenues almost back to pre-UIGEA days
Playtech's release of its half year figures this week carries the hopeful message that the company has been able to fight back to revenues only $ 2.2 million short of those achieved prior to the imposition of the US Unlawful Internet Gambling Enforcement Act.
The online gambling software development and turnkey provider group reported an 80 percent hike in total non-US revenues and said revenue was almost back to where it was before last year's ban on internet gambling financial transactions in the United States.
Revenue for the six months ended 30 June jumped to $44 million from $24.5 million, only $ 2.2 million away from the $ 46.2 million reported a year ago - a period that included US income.
Playtech's online casino revenue was up 53 percent to $32.6 million, while poker revenue jumped impressively to $10.5 million from $2.8 million this time last year, boosted by the migration of the Tribeca licensees onto Playtech's platform.
"Playtech has a very healthy pipeline of new business for the second half of the year and we look forward to making continuing strong progress," said chief executive Mor Weizer. "We see internal growth of our existing licensees and we are currently piloting with a potential Asian licensee for Asian player to player games which is a huge opportunity for us," he added.
Weizer revealed that European licensees were adding new games such as bingo and that Playtech is close to launching a new player-to-player network in China through Foundation Group, a part-Chinese government-owned firm in which Playtech has built up a stake.
Successfully achieved, moves such as this could help access the estimated 75 million Chinese gambling community. Although online gambling is currently outlawed in China, cash-prize poker-style online tournaments can be run in the country's 20 000 government regulated Internet cafes - and Foundation has permission to run tournaments, reports Reuters news service.
On the broader front, Weizer said Playtech's growing numbers of developers around the world and new sales and marketing staff had increased costs but the healthy pipeline of upcoming deals meant the firm may be able to upgrade profit forecasts.
The group also announced that finance director Shuki Barak has resigned for personal reasons. Non-executive chairman Roger Withers said the new man would be an externally appointed Israeli with public company experience and would be announced, "very soon". In the meantime, Barak will stay on to facilitate an orderly handover.
