Q4 numbers give Playtech a reason to be bullish

11.02.2008

Isle of Man based Internet gambling software firm Playtech plc was in confident mood this week on the back of an impressive quarter 4 showing which saw revenues jump 101 percent to $32.7 million compared to the same period last year (excluding US revenues following the company's US pull-out late in 2006.)

Company statements revealed that the figures “exceeded management expectations," adding that Playtech has seen month on month revenue growth throughout 2007 and was “highly confident” for the year ahead.

The company, whose poker and casino software is used by sites like Bet365, Victor Chandler and Blue Square, has rapidly rebuilt its business with European and Asian online betting sites after the U.S. government effectively banned online gaming in October 2006, reports the Reuters news agency.

Revenues from its core casino games software grew 72 percent to $22.9 million in the three months to end December 2007 and revenue from its fast-growing online poker software rose to $9.4 million - up an impressive 265 percent.

Shares in the firm, which have risen around 20 percent in the last three weeks, fell 3.8 percent in early trading to 378 pence, valuing the business at around GBP 820 million.

Whilst European licensees contributed 72 percent of revenues and remained the biggest earner with a 23 percent quarterly growth, the Asian region contributed 20 percent of revenues in the wake of a Playtech drive in the sector. By way of comparison, the revenue earning division in the same period during 2006 were 57 percent Europe, 26 percent Asia Pacific and 17 percent rest of the world.