Playtech cashes in during first half

Gambling software specialist Playtech reported higher earnings than expected on strong demand for online bingo products and casino games.

The company, which creates online software platforms for the like of Paddy Power and Gala, posted adjusted earnings before interest, tax, depreciation and amortisation of €91.2m.

This was ahead of the €88m that analysts had been expecting and prompted the company to offer a dividend of 7.8c a share.

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Non-executive Chairman, Roger Withers, said Playtech's multi-channel approach strengthened its market leading position.

"In the first half of the year we recognised the growing importance of the social gaming sector and positioned ourselves to penetrate the market through innovative software licensing arrangements," he said.

Withers said that despite uncertainty surrounding the future of European and US regulation, the company could take advantage of changes in the online gaming market through further expansion of its joint ventures and organic growth strategy.

Gross income rose 86% to €176.5m, comprising total revenues and Playtech's share of profit from its associate income from its 29% stake in William Hill Online.

Casino revenues increased 36% to €71.5m, mainly driven by its live casino product.

The company also highlighted the outperformance by PTTS, which it bought in July 2011, which meant an accelerated payment of the contingent consideration of €140m.