With revenues over the first half of the year up by 33 per cent, Playtech has said it is ideally placed to benefit from the raft of merger and acquisitions gripping the online betting industry.
Four of Playtech’s major customers; Betfair, Paddy Power, Ladbrokes and Coral are involved in huge deals to consolidate to combat higher taxes but rather than restricting growth for Playtech, the company believes it will drive future revenues. Indeed it stands to make £75m from a marketing services agreement with Ladbrokes conditional on completion of the merger with Gala Coral.
Playtech’s Chief Executive Mor Weizer said: “We see this as an opportunity to further strengthen our relationship with them. The beauty of the business model of Playtech is that it’s revenue-sharing agreements.”
The premise is that if Playtech’s customers grow, then Playtech benefits. The comments followed half-year results that showed pre-tax profits of €85.8m, up 11.6 per cent from the first half of 2014. Revenues increased 33.4 per cent to €286m with strong, broad based growth across regions and products from new and existing business
Alan Jackson, Chairman of Playtech, commented: “We have made significant progress against all aspects of our strategy during the first half of the year. We have completed a series of strategic acquisitions to create and enhance our new Financials division, a high-growth and regulated industry, and our continued operational delivery across all business segments has translated into a strong financial performance across all key metrics, with revenues up by a third in the half year.
“Our gaming business continues to go from strength to strength with our strategy of focussing on regulated markets driving growth. Our pipeline remains strong, with significant opportunities across all geographies, as customers seek to benefit from our market-leading omni-channel offering and our best-of-breed products in each and every product category. Taken together, the progress we have made gives me great confidence that the sustained momentum in our business will result in further growth in 2015 and beyond.”