Playtech Expansion Forges Ahead
London Stock Market-listed Playtech Limited has issued its latest trading statement highlighting its continued growth into a market leader in the design, development and licensing of software for the online and land-based gaming industry.
Playtech says that its 2007 trading to date has shown exciting growth including a 22% increase in quarterly revenues from January-March 2007 to April-June 2007. While its casino revenues still outstrip poker by some distance, the growth in poker is still spectacular meaning that poker is fast catching up with casino.
Playtech's poker revenues for the last three months (April-June 2007) were $6,300,000 which is a whopping 288% increase compared with the same quarter a year ago (excluding US business). More tellingly, poker revenues are up 50% from the first quarter of 2007 (January-March 2007) which suggests 2007 is seeing a big transition of players to the iPoker Network that Playtech runs. The stable of growing European and Asian facing poker rooms include Titan Poker, CD Poker, Tony G Poker, VC Poker and the French specialist poker room Poker770.
The casino business, which has been Playtech's traditional business also continues to grow. Its non-US revenues for the quarter to June 2007 were $17,400,000, an increase of 15% on the first quarter and 76% over the last 12 months. A recent coup for Playtech was the signing up of MANSION's online casino operations.
In overall terms, Playtech's entire revenues for the first six months of 2007 were $44,000,000 which is 80% higher than the first half of 2006 (again excluding US numbers which are no longer relevant for business comparisons). Within that figure, poker business increased by 253%, helped by acquisitions and consolidation within the industry. This has seen the likes of Tribeca Tables (that used to be the home of VC Poker and many other popular rooms) and Tain Poker networks being subsumed into the iPoker Network.
When the US numbers from 2006 are added, there has been an overall 5% decrease in revenues. However, given the massive impact that the US law changes had on the big players like Party Poker which lost over half its business in one hit, Playetch has steered a successful course from those choppy waters.
Playtech's Chief Executive Officer, Mor Weizer, said:
"The first six months has been an outstanding period for the Group, with the addition of 12 new licensees and growth experienced across all business areas. During the first half of 2007, Playtech gained a leading position with its poker offering and is now the world's largest independent poker network. Such a position, alongside the Company's market leading casino offering will continue to attract new licensees in the second half of 2007. The Group continues to invest in its new product pipeline in order to gain additional revenue streams and to maximise cross selling opportunities to its existing and future licensees."
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