Supplier of omni-channel solutions for the international gambling industry Playtech today published its financial results for the full year ended December 31, 2016. The company generated revenue of €708.6 million, up 12% year-on-year on a reported basis and 20% on a constant currency basis.
The company hailed the performance of its Gaming division, particularly of its Casino vertical. Gaming revenue increased 21% at constant currency during the reported period, mainly driven by a 23% casino revenue rise. Playtech’s flagship casino offering generated the total amount of €354.6 million last year.
Mobile casino offering was among the leading drivers of revenue growth. Revenue from products for hand-held devices grew 113% in the year ended December 31, 2016 due to greater mobile penetration. An 80% rise in the distribution of mobile software resulted in revenue from mobile representing 33% of overall software revenue generated by the company.
Despite a slowed growth in the second half of the year, Playtech noted that it was content with its Sports vertical. Revenue from Sports increased 2% year-on-year, driven by the establishment of the Playtech BGT Sports business.
Of its land-based offering, Playtech said that it enjoyed a strong organic growth during the second half of the year. The company has decided to allocate revenue from that particular vertical into its other verticals as from 2017, a move it believes reflects its omni-channel nature in the best possible manner.
Playtech hailed a substantial progress of work on its Virtual Sports offering, but noted declines in the Bingo and Poker verticals.
Gaming revenue from regulated markets continued growing. In 2016, it accounted for 48% of the bulk. In comparison, it represented 47% of overall revenue a year earlier. Playtech said in its annual report that it would maintain its focus on regulated markets in the years to come.
As for the company’s Financials division, it generated overall revenue of €65.6 million in 2016, up from €60 million in 2015. Playtech said that it considered it a transformative year for its newly established business and that it is now poised for a continued growth in 2017 and the years to come.
In 2016, Playtech engaged in heavy merger and acquisition activity as part of its growth strategy. As noted by the company in its report, it spent €240 million on several strategic acquisition deals. The company purchased slot development studio Quickspin, sports betting software and solutions provider BGT, and bingo software and hardware producer and supplier ECM Systems to boost its Gaming division, as well as Straight Through Processing brokerage firm Consolidated Financial Holdings to expand its Financials business.
