Playtech Announces Quarter 4 2011 ResultsPlaytech has announced their Quarter 4 results for 2011 – the main statistic is that gross income is up 79% to 78.4 million Euros.

The fourth quarter (which ended December 31st 2011) saw a strong performance – as a result, the Board are confident that they will meet their full year targets. The Key Performance Indicators are as follows (all from Quarter 4, 2010):

  • Gross Income increased by 79% to €78.4 million (from €43.9 million)
  • Revenues increased 89% to €69.6 million (from €36.9 million – 13% up from €61.5 million in Q3, 2011)

In terms of how Playtech performed compared to Quarter 3, 2011, here are the results:

  • Casino Revenues increased 13% to €32.8 million (from €28.9 million)
  • Poker Revenues decreased 2% to €5.5 million (from €5.6 million)
  • Bingo Revenues increased 9% to €4.1 million (from €3.8 million)
  • Services Revenues increased 18% to €23.1 million (from €19.5 million)
  • Videobet Revenues increased 22% to €2.7 million (from €2.2 million).

For the whole of 2011, gross income increased by a whopping 41% to €243.6 million (from €173.1 million in 2010). Total revenues also increased by 46% to €207.5 million (from €142.3 million). This was a total of 15% increase excluding 2011 acquisitions.

In terms of William Hill online, the share of profit increased 17% to €36.1 million with €8.8 million coming in Quarter 4 2011. Playtech’s cash balance as of the end of 2011 was €137.3 million – this included the €83.3 million spent on PTTS, Mobenga, Ash Gaming and IGS. In terms of 2012, they are 25% ahead of Quarter 1 2011 in software royalties and 2% ahead on average for Quarter 4 2011.

Playtech has also been busy on other fronts as they announced a 49.99% joint venture with German land-based gaming operator Gauselmann. The joint venture will consist of Playtech offering sports betting and gaming products. They have also announced a 50/50 joint venture with a South African casino operator, Peermont – this was done due to the impending online gaming regulations in South Africa.

In 2011, Paddy Power is now using Playtech software as well as Gala Coral striking an agreement which is underway in terms of integration.

Back to the Quarter 4, 2011 results, CEO Mor Weizer said:

“Playtech has again delivered a robust fourth quarter performance. As a result, the Board is very comfortable with market expectations for the year ended 31 December 2011 and looks forward to 2012 with confidence.

Growth from our existing business has created a solid platform for 2012. Taken together with today’s other announcements, I believe Playtech is well positioned to take advantage of market opportunities wherever as and when they appear”.