Playtech plc
Q3 trading update
Strong performance from both the Gaming and Financials divisions
Playtech (LSE: PTEC) today announces its trading update for the third quarter of 2015 together with an update on trading to date in the fourth quarter.
|
Q3 2015 (€m) |
Q3 2014 €m) |
Change vs Q3 2014 |
Q2 2015 (€m) |
Change vs Q2 2015 |
Casino |
75.4 |
62.4 |
21% |
77.9 |
-3% |
Services |
40.1 |
34.0 |
18% |
36.2 |
11% |
Sports |
8.9 |
7.1 |
25% |
8.8 |
1% |
Land-based |
8.3 |
3.5 |
134% |
6.8 |
22% |
Bingo |
5.3 |
4.6 |
15% |
5.2 |
3% |
Poker |
2.5 |
3.3 |
-25% |
2.9 |
-13% |
Other |
3.0 |
1.6 |
88% |
2.9 |
4% |
Gaming division |
143.4 |
116.5 |
23% |
140.5 |
2% |
Financials division |
27.5 |
- |
- |
10.6* |
158%* |
Total revenue |
170.9 |
116.5 |
47% |
151.2 |
13% |
* Q2 2015 figures for the Financials division are for the two months from completion in May 2015
Financial highlights
§ Total revenues up 47% compared to Q3 2014 on a reported basis
- 24% growth excluding acquisitions and adding back the impact of the UK POC tax
- 17% growth on a constant currency basis excluding acquisitions and adding back the impact of the UK POC tax
§ Regulated revenues accounted for over half of group revenues in the quarter, with over 40% of Gaming revenues from regulated markets (35% in Q3 2014)
Operational highlights
Gaming division
§ Strong growth from new and existing business with 73% of growth from regulated markets
§ Mobile accounted for 23% of software revenues in the quarter, up from 17% in Q3 2014
§ Positive momentum in white-label performance
§ Further progress on strong pipeline of opportunities
§ Named both Software Supplier and Mobile Software Supplier of the Year at eGaming Italy Awards
Financials division
§ Pro-forma revenue growth of 36% vs Q3 2014 driven by customer acquisition and market volatility
§ Active CFD customers of 26.4k in the quarter, up 21% against the same period in 2014, with first time depositors (FTDs) for CFDs of 9.7k, up 19%
§ Regulatory approval for the acquisition of Plus500 expected by the end of November
§ Formally challenging the Central Bank of Ireland's decision regarding the acquisition of Ava Trade
Current trading and outlook
§ Average daily revenue in the Gaming division for the first 27 days of Q4 2015 up 14% on Q4 2014 (10% on a constant currency basis excluding acquisitions and adding back the impact of the UK POC tax) and flat on Q3 2015
§ In the 19 trading days to 27 October 2015, the Financials division saw both active CFD customers and FTDs for CFDs, up over 20% against the same period in 2014
§ Confidence in continued momentum and strong growth for the remainder of 2015 and beyond
Mor Weizer, Chief Executive Officer of Playtech, commented:
"Playtech delivered a strong operational performance in the third quarter with reported growth of 47% and underlying growth of 17%. Three quarters of our growth in Q3 came from regulated markets which now account for over half of all group revenues.
"Our Gaming division continues to enjoy double-digit underlying growth with our strong pipeline of opportunities giving us confidence in maintaining our momentum. Our Financials division had a strong quarter driven by customer acquisition, with a focus on our direct marketing channels, and we hope to complement our growth with the completion of the acquisitions of Plus500 and Ava Trade.
"Given the strength of our business and the momentum that we are enjoying, we have confidence for the remainder of 2015 and beyond."
Conference call
Mor Weizer, Chief Executive Officer, and Ron Hoffman, Chief Financial Officer, will host a conference call today at 9.00 am. Details of the conference call are as follows:
Dial-in no UK: 020 3059 8152
Dial-in no all other: +44 20 3059 8125
Conference ID: Playtech Q3
Replay (available for one week)
Dial-in no UK: 0121 2604861
Dial-in US: +1 844 2308 058
Conference reference number: 1793367#
An audio file will be also available on the Playtech website following the conference call.
- Ends -
For further information contact:
Playtech plc +44 (0)20 3772 2500
Mor Weizer, Chief Executive Officer
Ron Hoffman, Chief Financial Officer
c/o Bell Pottinger
Andrew Smith, Head of Investor Relations +44 (0)1624 645954
Bell Pottinger +44 (0)20 3772 2500
David Rydell / Olly Scott / David Bass /
James Newman
Forward looking statements
This announcement includes statements that are, or may be deemed to be, "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Actual results may, and often do, differ materially from any forward-looking statements.
Any forward-looking statements in this announcement reflect Playtech's view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, Playtech undertakes no obligation to publicly revise any forward-looking statements in this announcement following any change in its expectations or to reflect events or circumstances after the date of this announcement.
About Playtech
Playtech is a market leader in the gambling and financial trading industries. Founded in 1999 and listed on the Main Market of the London Stock Exchange, Playtech has more than 5,000 employees in 14 countries.
Playtech is the gambling industry's leading software and services supplier with more than 120 licensees globally, including many of the world's leading regulated online, retail and mobile operators, land-based casino groups, government sponsored entities such as lotteries, and new entrants opening operations in newly-regulated markets. Its business intelligence-driven gambling software offering includes casino, live casino, bingo, poker and sports betting.
It is the pioneer of omni-channel gambling which, through Playtech ONE, offers operators and their customers, a seamless, anytime, anywhere experience across any product, any channel (online, mobile, retail) and any device using a single account and single wallet. It provides marketing expertise, sophisticated CRM solutions and other services for operators seeking a full turnkey solution.
Playtech's Financials division, run through its subsidiary Markets Limited (formerly called TradeFX), is an established and growing online CFDs and binary options broker and trading platform provider, operating a number of brands including markets.com. Its B2C focused offering is available in more than 100 countries and in more than 25 languages and is licensed and regulated in the EU and South Africa.
www.playtech.com
