Playtech revenue has soared in the third quarter of 2015, while the financial results of a number of gaming software providers has been plummeting. The general trend in the gaming industry has shown that financial results have been falling in a number of sectors. Apart from Playtech’s online poker, all other divisions have shown positive results this year.
Earnings Boost
Playtech’s third quarter has boosted the company’s financial results to the point that revenue for the first nine months of 2015 have already matched the total amount of revenue that was brought in for the full 12 months of 2014.
Revenue increased by an amount of 47% to a total of €170.9 million during the third quarter this year. Playtech’s financial services division has shown itself to be a good investment with €27.5 million out of the €170.9 million coming from this division.
With positive results in almost all areas, the poker division saw a fall of 25%, dropping to €2.5 million when compared to the third quarter in 2014. Casino revenue went up by 21%, Bingo went up by 15%, and sports betting revenue rose by 25% when compared to the same period last year.
CEO's Comments
Playtech’s Chief Executive Officer, Mor Weizer, commented on the company’s excellent performance in the first three quarters of 2015. He said: “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.”
At this time, the acquisition of Ava Trade and Plus500 are on hold while Playtech is waiting for the United Kingdom’s regulatory body to give the go-ahead for the takeover. While investors have shown some concern while waiting for approval for the acquisitions, it appears that the company’s strong financials have allayed their fears.
Weizer concluded: "Given the strength of our business and the momentum that we are enjoying, we have confidence for the remainder of 2015 and beyond.”