"We have made a solid start to 2011," said Playtech Cyprus Ltd. (AIM:PTEC), CEO Mor Weizer in response to the gaming solutions developer's revenue growth for the first quarter by the gaming platform software developer, controlled by Teddy Sagi.
Playtech's gross revenue rose 7% to €46.6 million for the first quarter from €43.4 million for the corresponding quarter of 2010, and total revenue rose 2% to €36.7 million from €36.1 million. Excluding France, revenue rose 16%.
Playtech said that it expects earnings before interest, taxes, depreciation and amortization (EBITDA) of at least €26.5 million for the first quarter.
Playtech's casino revenue rose 23% to €25.4 million and bingo revenue doubled to €3.5 million, thanks to the acquisition of Virtue Fusion. However, poker revenue fell 25% to €5.7 million. Playtech's share of the profit from William Hill Online Ltd. rose 34% to €9.9 million for the first quarter from €7.4 million for the corresponding quarter.
Playtech had €65 million in cash at the end of March, following payments for Virtue Fusion Ltd., Gaming Technology Solutions plc, and Intelligent Gaming Solutions Ltd. The figure does not include a proposed dividend payout of €23.3 million.
Mor cautioned, "While there remains some near term uncertainty as to the regulatory development in a number of jurisdictions, such as Germany, we continue to invest in positioning ourselves for whatever long term opportunities come out of such regulation." He added that the company is waiting for the launch of Videobet's UK contracts, regulations on Italian casino and cash tables, and that it was in late stage discussions with new licensees in Europe.
Mor added, "The actions taken by the US Department of Justice against certain US-facing poker sites on 15 April has prompted considerable volatility, however Playtech believes that this action will in the longer term have a positive benefit to the iPoker networks both in the dot.com segment and also in the European regulated markets."
Playtech's share price fell 0.3% in early trading on London’s Alternative Investment Market (AIM) to ₤3.25, giving a market cap of ₤790 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 28, 2011
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