Isle of Man-licensed gambling operator Playtech announced its financial results for the first half of the year. Overall revenue amounted to €286 million, up 33% from the €214.4 million posted for the same period a year ago.
Revenue from the company’s casino operations increased 28% to €32.7 million. Other services generated a total of €12.6 million, up 21% year-on-year. Proceeds from sports betting rose 30% to €3.8 million. Land-based operations marked the most considerable increase of 159% year-on-year to €9.2 million. Bingo options generated €1.7 million, up 20%. Poker proceeds amounted to -€1.4 million, down 19%.
Adjusted EBITDA for the period totaled €112.9 million, up 16% from the €97.6 million posted for the same period a year ago. Adjusted net profit increased 19% to reach €115 million.
Despite the excellent results for the six months ended June 30, Playtech noted that average daily proceeds for the first 55 days of this year’s third quarter dropped 2% compared to the figures posted for the previous quarter. Yet, daily revenue was up 15% year-on-year.
The company pointed out that usually the second quarter of the year is the strongest and the third one is by default the slowest.
Commenting on the gambling operator’s performance, Chairman Alan Jackson said he believes that the progress they have made so far will result in further growth by the end of the year and in the years to come.
Playtech also commented on the performance of the so-called Markets Ltd. financial division, which was formed in May following the purchase of online forex trading platform TradeFX for the amount of €208 million. According to the gambling company, which is apparently making its first steps into the world of online trading, its newly created financial division had an excellent start to this year’s third quarter.
Playtech is also expected to finalize the purchase of Plus500 Ltd., provider of online trading services, by the end of September. The transaction will be completed provided that certain conditions are satisfied. The gambling company is expected to pay the amount of $703 million (£460 million) for Plus500. In June, Playtech placed a total of 29,050,000 ordinary shares to raise £250 million and provide funds for its latest acquisition.
Plus500’s revenue for the first half of the year increased 20% to $127 million. However, pre-tax earnings dropped 23% to reach $55.5 million.
