Playtech's income rises in first quarter

Gaming software development company Playtech posted an increase in first quarter income driven by sport and casino revenues.

Gaming software development company Playtech posted an increase in first quarter income driven by sport and casino revenues.

Gross income rose 16% to €102.5m, up from the prior year's €88.4m, while total revenues grew 16% to €87.5 from €75.1m.

A 128% rise in sport revenue to €4.6m and a 28% increase in casino revenue to €44.1m were the key drivers of results.

Services revenues increased 2.0% to €26.3m and bingo revenues grew 9.0% to €4.8m.

However, poker revenue fell 18% to €4.4m and videobet revenues were down 2.0% to €2.4m.

During the period the group entered into a poker deal with Betfair and launched its mobile live dealer casino solution with licensee Betfred.

Playtech also kicked off its live gaming offering in Spain in partnership with Casino Gran Madrid and signed an agreement with Ladbrokes to provide product suite and innovative marketing services from May.

Last week William Hill completed the acquisition of Playtech's 29% stake in William Hill Online for £423.75m, delivering a cash-on-cash return of more than 3.5 times, excluding software royalties.

Net cash at the end of the quarter came to €56.6m, compared to €51.7m at the end of December.

"Playtech has made a strong start to 2013, delivering a robust quarterly performance driven by our flagship casino product, LIVE, and in particular mobile casino and Mobenga," said Chief Executive Officer Mor Weizer.

"Our landmark transaction with Ladbrokes, under which Playtech will provide its full product suite and marketing advisory services, clearly demonstrates Playtech's unique position. Ladbrokes is one of the largest and most respected brands in the betting and gaming industry, and we are very excited about the prospects for this venture and are committed to making it a great success."

RD

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