Playtech-Hills Online profit share up record 50%
Third quarter sees supplier's share of William Hill Online profits rise 50% to 12.8m.
Playtech’s share of profit from its online joint venture with William Hill is up a record 50% compared to the third quarter of last year, it has announced in an interim management statement this morning.
In what is traditionally a slower period for the business and its counterparts the software supplier saw growth continue into Q3 of 2012 with total revenues up 30% to 79.9m from 61.5m in the same period last year, up 2% on the second quarter. Its share of profit in William Hill Online was up 50% to 12.8m compared to 8.6m in Q3 last year, up 36% from the second quarter.
Speaking to eGaming Review this morning Playtech chief executive Mor Weizer called WHO an “amazing business” whose capabilities are “unparalleled” in the gaming industry.
“When you combine a great brand with a great set of expertise all enabled by best of breed software this is the winning combination.
“The scale and breadth of this business positions it so well to gain market share and this has been the case in the last few years and has accelerated ever since we began working together in 2008,” he added.
Commenting on the call option that William Hill is considering making once it values Playtech’s 29% stake between now and February next year Weizer said it remained in the “early stages” and that both parties had still yet to identify respective banks to whom they would look to establish individual valuations.
Analyst Nick Batram this morning predicted that if Playtech does sell its minority stake in WHO then it could have between £400 to £500m to further invest in strategic deals and that given the group’s acquisition track record this “could provide substantial upside”.
Asked what the company could do with the cash should it sell Weizer said the business had “identified various sources and various investment opportunities” that would “allow us to grow the business and create additional revenues and income streams”.
“It’s a combination of smaller acquisitions and other initiatives but it’s too early to talk about that, but we’re in the process of identifying a list,” he added.
The company saw all its verticals grow revenues compared to the same period last year with poker the exception, down 27% to 4.1m compared to 5.6m in Q3 2011, and down 6% on Q2 this year.
Casino revenues are up 33% to 38.5m compared to 28.9m in Q3 2011 and up 4% on Q2 2012, while bingo are up 17% to 4.4m compared to 3.8m in Q3 2011 and up 1% on Q2 2012. Daily activity for the first 37 days of the fourth quarter of this year is more than 17% above the comparable quarter last year Playtech said in statement and 3% above Q3/12.
Weizer added that progress with Gala Coral following its exclusive 10-year software agreement last year as well as increasing its number of well-known poker licensees in particular, were among its operational highlights for the quarter.
The third quarter of 2012 saw:
- Gala Coral complete its migration onto Playtech’s platform with the launch of Gala Bingo and Coral in July and October respectively. In addition, Gala Coral has launched the Playtech mobile sports betting application which is now fully integrated with Playtech Casino.
- French online poker and casino group Betclic-Everest launch Betclic and Everest poker products in France and international markets on ipoker.fr and ipoker.com respectively. Both brands are now on iPoker 1, Playtech’s top tier on its poker network.
- Betfair renew its contract for casino, which has now been extended to include bingo as well as poker and mobile in Spain and Italy.
- A new poker liquidity programme introduced (iPoker split into two tiers) offering a “more balanced environment” for licensees and players at the end of the third quarter, the company said.
- Mobile bingo applications launch on Android for several licensees including Paddy Power.
- Launch of the mobile hub, an open framework designed to integrate content and deliver a “seamless” user experience on mobile devices.
- The release of 11 new games during the period, including three new branded slot games: Baywatch, Marilyn Monroe and John Wayne.