Playtech CEO Mor Weizer is ecstatic about the record-breaking 2014 third quarter performance of the online gaming software company. It is now clear that the company is back on track in surpassing current market expectations by year’s end. According to reports, the revenue for the third quarter is 28.6% higher than last year’s corresponding period of €90.6 million. Playtech’s Q3 trading update showed the company’s gross sales amounted to €116.5 million. An initial report indicated that the first three weeks of the fourth quarter is up by 22% compared to the same trading period a year ago.
Playtech’s Q3 2013 Revenues
The highest vertical earner is attributed to Playtech’s casino business. Up by 33.3% or €62.4m based on last year’s Q3 revenue. Services revenue is €34 million, which is a 19.3% increase. Sports betting also enjoyed a substantial growth of 108.8% or €7.1 million. The increased revenue may well be attributed to Gazzetta dello Sport, an Italian online sportbook. Land-based betting increased to €3.5 million, up by 20.7%, while poker accumulated €3.3 million, an improvement of 3.1%. Other operations of Playtech remained as is.
The revenue generated by Playtech’s European operations dropped at 56% compared to last year’s 64%. The drop is somehow compensated by the 9% growth of its Asian market – 25% increased to 36%. Revenue from the rest of the world dropped to 8%.
Playtech Moving Forward
Mor Weizer is very optimistic about Playtech’s increasing influence in the gambling world. He indicated that three licensees have opted to shift their UK-facing companies to Playtech’s proprietary white label structure. He is confident that the change is an indication of the three businesses’ belief in the financial and operation advantages achievable by using Playtech’s turnkey offering.
A major Playtech acquisition that will take the company into the next level is in the offing in 2015. Weizer expressed that UK-facing businesses will experience financial pressures that will place Playtech in a favorable position to propose a deal. The online gambling software giant has the money to make deals and do buyouts as its former joint venture partner William Hill Online bought Playtech’s stake in 2013.
All in all, Playtech’s growth and revenues for this year (and the next) may well exceed market expectations.
Submit your review | |
Submit your review | |
