Playtech's annual earnings rise on landmark deals

20th Feb 2014 07:52

- Revenues and earnings rise- Deals with Ladbrokes boost results- Firm disposes stake in William Hill Online- PokerStrategy.com acquisition bolsters services- Record dividend announcedPlaytech reported a rise in annual earnings as the gaming software development company signed two landmark deals with Ladbrokes to revamp the bookmarker's digital offering until 2017.Revenue rose 16% to €367.2m in the year ended December 31st 2013, compared to €317.5m in 2012. Earnings before interest, tax, depreciation and amortisation (EBITDA), adjusted to exclude the share of profit from William Hill Online, jumped 17% to €159.4m from €136.2m.Playtech sold its 29% stake in William Hill Online to William Hill for £424m during the period. Adjusted net profit, excluding share of profit from William Hill Online, was up by 26% to €148.3m from €117.8. Including the sale of investment in William Hill Online, net profit came to €488.8m.Helping to boost revenues agreements with Ladbrokes to provide a full product suite and innovative marketing services. Ladbrokes has launched Vegas tab, Mobenga, and Geneity sports system and poker in Spain in the second half of 2013, and launched live casino in January 2014.The acquisition of PokerStrategy.com bolstered Playtech's poker offering and marketing services division.The group had cash balances of €527.4m at year end, up from €120.9m the prior year.Playtech announced a record total 2013 dividend of €188.5m, or €0.64 per share, reflecting a special dividend of £100m to be paid in sterling, equivalent to 34.1p per share. A final dividend of €45.2m, or €0.15 per share, will be paid to shareholders. "I am delighted to announce the payment of a substantial special dividend totalling £100m in addition to the recommended €0.15 final dividend, bringing the total dividend for 2013 to over €188m," said Chairman Alan Jackson. "Playtech has further strengthened its position as the world's leading supplier of technology and services for the online gambling industry and the Board looks to the future with confidence and optimism."The company added that its dividend policy going forward remains to pay out 40% of adjusted net profit, supported by strong underlying growth in earnings and cash generation.Shares rose 1.21% to 750p at 08:13 on Thursday. RD