Playtech's first half revenues rise on business wins

29th Aug 2013 09:13

Playtech's revenue rose 15 per cent to 176.8m in the first half as the group gaming software developer secured new business.Gross income increased by 10% to €194.9m and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was up 3% to €94.3m. Adjusted net profits edged up a modest 0.5% to €84.9m.During the period the group signed a landmark agreement with Ladbrokes to provide product suite and marketing services from May 1st."The company's continued growth has been achieved by developing existing and cultivating new relationships as demonstrated by the agreements signed in March with Ladbrokes to develop its digital business," Chairman, Roger Withers, said. Withers is due to step down from his role after a board meeting on October 9th and will be replaced by Alan Jackson, a Senior Non-Executive Director of the company.Earlier this year the group completed the sale of its 29% stake in William Hill Online to William Hill for €492.4m, delivering a cash-on-cash return of more than 3.5 times including the share of profits received and excluding software royalties.Playtech, which develops software for betting firms such as Paddy Power and Betfair, issued an interim dividend of €0.078 per share, unchanged from last year.The firm is now looking to spend €600m on acquisitions to take advantage of the rise of betting via mobile phone and tablets. Chief Executive Mor Weizer said Playtech was looking for bolt-on and strategic purchases. He said Playtech was in a good position with no debt, more than €500m euros on its balance sheet and access to more than €100m.Playtech bought poker community Pokerstrategy.com for €38.3m in July.Investec raised its forecasts to reflect the first half margin beat and the acquisition of Pokerstrategy.com with fiscal year 2013 EBITDA increasing to 5% to €173.1m.The broker reiterated a 'hold' rating and a target price of 690p. Shares fell 0.15% to 659.50p at 09:35 on Thursday.RD