PLAYTECH REVENUES TOP $100 MILLION IN 2007

PLAYTECH REVENUES TOP $100 MILLION IN 2007



Significant increases in online casino and poker revenues for Isle of Man-based turnkey provider


2008-03-05

Significant increases in online casino and poker revenues for Isle of Man-based turnkey provider

The online gambling games developer and turnkey provider Playtech plc posted strong results for the full 2007 year this week, showcasing total revenues exceeding $100 million and vigorous performances from its casino and poker operations.

Total revenues soared 86 percent to $103.6 million (2006: 55.6 million) thanks to a 58 percent increase in casino revenues to $74.7 million and a stunning 269 percent ghrowth in online poker revenues to $27.4 million through its iPoker network.

Other highlights included:

Adjusted net profit before tax of $70 million (2006: $68 million, including U.S.)

Cash generated from operating activities down at $62.6 million (2006: $72.6 million) - 95 percent of the Group's operating profit before non cash items

Recommended Final Dividend of 9.9 U.S. cents per share, making a total of approximately $21.5 million for the year. Once approved and paid, this will result in shareholders receiving an aggregate dividend for 2007 of 16.0 cents per share or approximately $34.6 million (2006: $33.5 million [15.7 cents per share])

Cash investment in the Asian-facing CY Foundation of $10.25 million and the fair value of such investment on 31 December 2007 was $18.9 million. Deferred revenues of $27.6 million recorded in the balance sheet

Cash investment in recently listed AsianLogic plc group of US$5.0 million and the fair value of investment on 31 December 2007 was US$15.9 million. Deferred revenues of $10.6 million recorded in the balance sheet

Playtech withdrew from the US market over a year ago, and 2006 revenue comparisons therefore exclude contributions from that market.

The report reveals that Playtech's iPoker network became the world's largest online poker network during the year as assessed by the independent tracking website Pokerscouts.com. On the poker front, the successful integration of the non-US assets of the Tribeca poker network acquired earlier was completed, and 15 new licensees were added (8 from Tribeca) including new licensees in the rapidly expanding Asian and European markets. Last December, the iPoker network held the European Championship of Online Poker which attracted over 44 000 players competing for a total of $2.85 million in prize money. A second ECOOP is currently planned with an aggregate of more than $3.5 million in prize money

Playtech's staff has now grown to 650, based in various operational regions. This network of assets had enhanced product development and made the Playtech games inventory Flash as well as download capable, introduced Flash bingo action and an upgrade of Playtech's live gaming software.

In console gaming, the Videobet subsidiary has completed switchable technology which allows an operator to operate gaming machines on a stand-alone basis and switch it to server-based without any additional cost or time. And following a joint venture agreement with Unicum, Videobet's software is to be utilised in at least 500 stand-alone gaming machines located in the Ukraine.

Looking ahead, the company reports a positive beginning to 2008, with January growth up 14.4 percent in revenues over the monthly average revenues in the fourth quarter of 2007. Six new licence agreements have already been signed in 2008 in line with the Group's strategy to diversify geographically, focus on regulated markets and migrate licensees from competitors, and there is "a strong pipeline of potential additional licensees."

By the end of Q1, the company plans to launch new Asian P2P games, which are extremely popular in the Asian market, and new games development is being accelerated, including a large number of slot, table and card games and additional Asian P2P games.

Playtech's non-executive chairman Roger Withers commented: "I am pleased to report another strong set of full year results for Playtech with all key performance indicators performing ahead of targets.

"The Group continues to expand rapidly with increased product development in new geographical markets leading to a number of new significant revenue streams.

"We have had an excellent start to 2008 and the Board is highly confident of the Group's performance for 2008 and beyond and its ability to maintain our position as the world's leading provider of software solutions to the online gaming industry."

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