Presenting its H1 2017 results (period ending 30 June), FTSE-listed gambling technology group Playtech Plc has declared a strong ‘cash generating’ performance recording growth throughout its core metrics combined with KPI gains across its product divisions.
Driven by growth in its ‘regulated markets’ activity, combined with the strong performance of its flagship casino division (up 28%), Playtech would achieve period group revenues of €421.6 million up 25% on H1 2016: €337 million.
The firm’s strengthened commercial pipeline would see the company declare a period EBITDA of €171 million, up 19% on H1 2016: €143 million.
A confident Playtech governance stated that its performance gains were a testament to a ‘proven model’ which had created an effective cash generating business. Closing a busy H1 2017 period Playtech governance would declare ‘reported ’group profits of €90 million (H1 2016: €49 million).
At present, the company holds a ‘Gross Cash’ position of €536 million (December 2016: €545 million) and €376 million when adjusted (December 2016: €392 million)
Detailing period operational highlights, the gambling technology provider noted that it had secured vital contract renewals with leading UK betting operators Paddy Power Betfair, Sky Bet and Betfred through its Playtech BGT sports division.
The company continues to invest in its multi-channel strategy for tier 1 operators, undertaking investment in its live casino product development, and seeking to faster integrate new tech and games assets.
Alan Jackson, Chairman of Playtech, commented on H1 2017 performance: “The proven strength of the Playtech model was once again demonstrated with a strong H1 performance driven by both underlying growth and recent acquisitions. As always, Playtech’s performance has been converted into strong cash generation enabling a 10% increase in the interim dividend, in line with the progressive dividend policy.
“The first half of the year saw Playtech’s Gaming Division deliver strong growth with double-digit underlying growth and recent acquisitions integrated and performing in line with expectations. Playtech has also continued to execute on its industry leading omni-channel solution by deepening its offering in key verticals with the integration of Playtech BGT Sports creating a fully integrated best-in-class sports technology solution and the launch of the world’s largest Live Casino studio in Latvia, revolutionising the offering in a growing and dynamic channel.
“As with the Gaming Division, momentum in the Financials Division continued with improvements across all KPIs. The announced acquisition of assets from Alpha brings an important new B2B revenue stream and the creation of TradeTech Group as our operating and corporate brand for the business is an important milestone and better reflects the broadening of the division’s offering towards a full turnkey B2B financial trading solution.
“Taken all together, this proven platform for growth across the business has again delivered a strong performance and management remain confident of further strategic progress in the second half of 2017.”