Online gaming solutions developer Playtech Cyprus Ltd. (AIM:PTEC) has signed a memorandum of understanding (MOU) with UK gaming company Gala Coral Ltd. to supply it with a technology platform and a broad range of products, Playtech chairman Roger Withers told the company shareholders at yesterday's general meeting.
"Whilst we don't normally comment on MoUs, we are excited by having the chance to partner with another of the UK's leading gaming operators," Withers added, "If a formal agreement is concluded, this new licensee could deliver significant revenues once it migrates onto our platform over the following 12-18 months."
Withers also said that Playtech has almost completed the conversion of over 21,000 FOBT machines to Videobet software in partnership with Global Draw, a subsidiary of Scientific Games. "This gives us the leading position in the UK market and an excellent platform for future growth," he said.
Playtech also announced that it will buy back up to 10% of its share - 24,265,448 shares - on the open market, after the board of directors decided that recent trading in shares did not reflect their underlying value.
Based on Playtech's current share price, the buyback could cost over ₤81 million. The company had $92 million in cash and cash equivalents at the end of March.
Playtech's share price has fallen 21% since the beginning of the year, and 24% over the previous 12 months.
Playtech's share price fell 1.5% in morning trading on London’s Alternative Investment Market (AIM) today to ₤3.36, giving a market cap of ₤807 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2011
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