Strong casino performance drives Playtech’s 12% revenue rise
String of acquisitions also help supplier’s revenues reach €708.6m in 2016, while EBITDA also soars
Playtech reported a 12% rise in 2016 group revenues this morning, boosted by strong growth in casino and new acquisitions.
Full-year revenues amounted to €708.6m (£599.6m), up from €630.1m (£533.3m) in 2015, while revenues from its flagship gaming arm grew 21% year-on-year to €643m.
Casino performed strongly during the 12-month period with revenues growing 23% to €354.6m (£300m), compared to a 17% drop in poker revenues and a 1% fall in bingo revenues.
Growth in Sports slowed in the second half of 2016 following the loss of Mobenga contracts which came into effect at the end of H1. However, full-year revenues increased 2% in constant currency, with its BGT acquisition offsetting the loss of contracts in H2.
Elsewhere, the supplier’s financial division reported a 9% rise in revenues to €65.6m (£55.5m), which was boosted by the H2 acquisition of CFH.
Playtech also benefited last year from a string of acquisitions having spent €240m (£203m to acquire a number of companies, including BGT, CFH, Quickspin and ECM.
Alan Jackson, chairman of Playtech, said: “Playtech has continued to successfully execute its strategy for strong operational and financial performance, strategic M&A and shareholder returns.
“Sports saw a good second half performance following the acquisition of BGT with the newly formed Playtech BGT Sports bringing together all aspects of Playtech’s sports offering creating a fully integrated, best-in-class sports betting technology.
“Following the transitioning of the Financials division in the first half of the year, the second half performance was encouraging with improved KPIs.”
EBITDA for the year-ended 31 December 2016 was €302.3m (£256m), up from €251.9m (£213m) last year.
Playtech added €296m (£250m) was returned to shareholders including a €150m (£127m) special dividend and €50m (£42.3m) through a share buyback.
In accordance with the new progressive dividend policy adopted in 2016, the full year 2016 dividend has been increased by 15%.