Solid growth underpins more planned M&A at Playtech

Publishing its results for the 12 months to December 31, 2017, gaming content and technology giant Playtech reported group revenues of more than €800m in the period, up 18 per cent from 2016 on a constant currency basis.

Total revenue reached €807.1m in the period, up from €708.6m, while earnings (adjusted EBITDA) rose 11 per cent (constant currency) to €322.1m. Reported net profit was also up 11 per cent on a constant currency basis, to €248.1m.

Fifty-four per cent of group revenue now comes from regulated operations, up from 48 per cent in 2016.

Excluding acquisitions and on a constant currency basis, revenues climbed five per cent in the period. Releasing the results, Playtech said it is “actively looking at material and bolt-on M&A targets in the Gaming division”.

Into 2018, average daily revenue in Playtech’s B2B gaming division for the first 51 days of the year was down 11 per cent against the same period in 2017 – down eight per cent excluding acquisitions and at constant currency. The company cited particularly strong H1 2017 performance in Asia as a factor.

Alan Jackson, chairman of Playtech, said in the statement: “Playtech delivered double-digit revenue growth in 2017 despite headwinds in both regulated and unregulated operations. Playtech’s performance continues to be converted into strong cash generation enabling a 10 per cent increase to the full year dividend.

“Playtech’s strategy to improve the quality of earnings for the Group, organically and through M&A, was evident in the increase in regulated revenue to 54 per cent.

“The health of the core business coupled with the strength of the balance sheet means Playtech is strategically well placed to execute on M&A that will continue to drive this growth and further diversify Playtech’s revenue base,” said Jackson.

“Management is confident 2017 has delivered a strong platform for strategic progress in 2018 through execution of organic opportunities and M&A.”

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