Developer of software for the international gambling industry Playtech plc announced today its financial results for the twelve months ended December 31, 2015. Revenue increased 38% year-on-year to reach €630.1 million.
Excluding acquisitions that took place in 2015 and adding back the impact of the Point of Consumption tax that took effect in December 2014, full-year revenue was up 26%.
Adjusted EBITDA amounted to €251.9 million in 2015, up 22% from the €207.1 million reported for the previous year. Adjusted net profit was up 8% year-on-year to reach €205.9 million. Reported net profit was down 3% year-on-year to €135.8 million. Playtech also reported cash balances of €857.9 million at the year end.
The company’s gaming division performed more than well in 2015. It registered a double-digit increase, excluding the impact of the Point of Consumption tax, new acquisitions, as well as the currency and white-label effects. Playtech pointed out that revenue from its operations in regulated markets grew faster than the .com business last year.
Gaming turnover from regulated markets accounted for 41% of the overall proceeds generated by the division. In comparison, regulated markets contributed 36% of the overall gaming revenue in 2014. The software developer also noted that mobile kept on being a core part of its growth strategy. Mobile revenue represented 21% of the overall software revenue generated by the company in 2015.
Playtech reported a particularly strong growth in the UK, mainly driven by operators Betfair, Gala Coral, Ladbrokes, and Sky as well as by white-label clients. Another important operational highlight was the fact that the company signed 10 new license agreements last year, with Mr Green, win2day, and Sun Bingo being among the new licensees.
As for Playtech’s newly established financial division, it posted pro forma full-year revenue of $100.2 million. Adjusted EBITDA amounted to $17.8 million. EBITDA margin stood at 26% mainly due to volatility and business model improvements aimed at enhancing compliance in a constantly tightening regulatory environment and impacting revenue growth and margin in 2016.
Commenting on Playtech’s 2015 financial results, Chairman Alan Jackson said that the company delivered strong results in 2015, despite the extremely busy year it had. Of its gaming division, Mr. Jackson said that they all expect considerable wins this year, driven by the omni-channel product offering as well as both by newly regulated and existing markets. As for the company’s financial division, the official said that it is doing quite well with its improved business model.
Mr. Jackson added that Playtech is eyeing a number of potential acquisitions in its gaming division in 2016 and that they are all confident in the company’s strong growth this year as well as in the years to come.
