Playtech Revenues Soar 47% in Q3; Already Matches €456.9 Million From Whole of 2014
While gambling companies like Ladbrokes, William Hill and bwin.party all announced trading figures with many red indicators, investors in software company Playtech are smiling after the company revealed its revenues have already matched the €456.9 million generated throughout the whole of 2014.
Playtech's revenues increased a staggering 47% to €170.9 million for the third-quarter of 2015, beating the prediction of Deutsche Bank by €35 million. The news saw shares in Playtech finish up 80.5p to 873p per share although it is still some way short of the 936p 12-month high hit in July 2015.
All Playtech divisions, except poker, saw revenues increase during Q3 of 2015.
Investors in Playtech had started to get cold feet following uncertainty surrounding its acquisition of the online brokers Plus500 and AvaTrade, both of which are still awaiting approval by the United Kingdom's regulatory body.
The company has invested heavily in its financial services division and that investment looks to have paid off with revenues making up €27.5 million of the €170.9 million for Q3. All but one of Playtech's divisions saw significant revenue increases, the only black mark against an otherwise perfect report was its poker division that saw revenues fall 25% to €2.5 million when compared to the same period of 2014.
Playtech Financial Figures
|Division||Q3 2015 (€m)||Q3 2014 (€m)||Change vs Q3 2014||Q2 2015 (€m)||Change vs Q2 2015|
Mor Weizer, Playtech's Chief Executive Officer, commented on the sterling trading figures: "Playtech delivered a strong operational performance in the third quarter with reported growth of 47% and underlying growth of 17%. Three-quarters of our growth in Q3 came from regulated markets which now account for over half of all group revenues.
"Our Gaming division continues to enjoy double-digit underlying growth with our strong pipeline of opportunities giving us confidence in maintaining our momentum. Our Financials division had a strong quarter driven by customer acquisition, with a focus on our direct marketing channels, and we hope to complement our growth with the completion of the acquisitions of Plus500 and Ava Trade.
"Given the strength of our business and the momentum that we are enjoying, we have confidence for the remainder of 2015 and beyond.”