2nd UPDATE: Playtech Revenue Climbs 32%; Current Trading Strong

28th Jul 2010 10:39

(Adds CEO comments, analyst estimate) By Tommy Stubbington Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Gambling software provider Playtech Ltd. (PTEC.LN) Wednesday posted a 32% rise in second-quarter revenue, and said comparable trading at the start of the third quarter was up 20% from a year earlier, although it was lower than the previous quarter. The company reported revenue for the three months to June 30 of EUR36.8 million, up from EUR27.8 million in the same period a year earlier, and said earnings before interest, tax, depreciation and amortization, or Ebitda, for the first half is expected to be not less than EUR53 million. Trading activity for the first 26 days of the third quarter is down 12% on the second quarter, Playtech said. The company has been hit by its withdrawal in June from the French casino business--which previously contributed 10% of group revenue--plus a normal seasonal slowdown, and the impact of the football World Cup, as punters turned their attention in June to football at the expense of other sports, Chief Executive Mor Weizer told Dow Jones Newswires. He added that this setback is temporary, saying "from August and onwards it will improve significantly". The company is comfortable with current market expectations for the full year, he said. According to Factset, the median forecast of five analysts for 2010 is Ebitda of EUR103.9 million on revenue of EUR152.9 million. Gross income--Playtech's revenue combined with its share of the profit from William Hill PLC's (WMH.LN) online operation--was up 34%. The figure, which is closely tracked by analysts, rose 2% on the previous quarter. Growth of 61% in bingo revenue--reflecting the contribution of Virtue Fusion, which was acquired in February--and 3% in casino revenue offset a 13% decline in poker. CEO Weizer said the company continues to look for further acquisitions. William Hill Online contributed EUR7.6 million during the quarter--up 43% on the year. The company also said that gambling operators Snai S.p.A (SNA.MI) and Eurobet have signed up to join its Italian bingo network. The deals are a "significant revenue enhancing step forward for our Italian bingo operations," Weizer said in a statement. At 0810 GMT, Playtech shares were up 28 pence, or 6.7%, at 448 pence, outperforming a flat FTSE 250 mid-cap index. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; [email protected] (END) Dow Jones Newswires July 28, 2010 05:39 ET (09:39 GMT)