Casino gains drive Playtech 25% revenues jump
Software provider reveals strong H1 performance but a dip in EBITDA margin thanks to poor Sun Bingo performance
Playtech has reported a 25% year-on-year rise in H1 revenues to €421.6m (£388.6m), fuelled by its core online casino business and benefits from recent acquisitions.
EBITDA rose 19% to €170.9m (£157.5m) but the firm’s EBITDA margin fell by 2.1pp from H1 2016, partly due to losses from its contract with Sun Bingo.
The FTSE 250 firm’s adjusted diluted earnings per share were 21% higher at constant exchange rates for H1 at €36.2, with the board confirming a total dividend of 12.1 cents – an increase of 10%.
Playtech chairman Alan Jackson said: ““The proven strength of the Playtech model was once again demonstrated with a strong H1 performance driven by both underlying growth and recent acquisitions.
“As always, Playtech’s performance has been converted into strong cash generation enabling a 10% increase in the interim dividend, in line with the progressive dividend policy.”
The firm said it remains confident of a strong performance in FY17 driven by organic growth, albeit with normalised levels of growth in H2 from Asia following unusually high levels of activity in H1.
Playtech’s strong H1 performance was reflected in the company’s aggressive acquisition approach, having boosted its financial division with the purchase of Alpha earlier this week.