Playtech announces Q3 trading update 

Playtech has issued today a press release to announce its trading update for the third quarter of 2015 together with an update on trading to date in the fourth quarter.

• Strong performance from both the Gaming and Financials divisions

Financial highlights

•  Total revenues up 47% compared to Q3 2014 on a reported basis

– 24% growth excluding acquisitions and adding back the impact of the UK POC tax
– 17% growth on a constant currency basis excluding acquisitions and adding back the impact of the UK POC tax

• Regulated revenues accounted for over half of group revenues in the quarter, with over 40% of Gaming revenues from regulated markets (35% in Q3 2014)

Operational highlights

Gaming division

• Strong growth from new and existing business with 73% of growth from regulated markets
• Mobile accounted for 23% of software revenues in the quarter, up from 17% in Q3 2014
• Positive momentum in white-label performance
• Further progress on strong pipeline of opportunities
• Named both Software Supplier and Mobile Software Supplier of the Year at eGaming Italy Awards

Financials division

• Pro-forma revenue growth of 36% vs Q3 2014 driven by customer acquisition and market volatility
• Active CFD customers of 26.4k in the quarter, up 21% against the same period in 2014, with first time depositors (FTDs) for CFDs of 9.7k, up 19%
• Regulatory approval for the acquisition of Plus500 expected by the end of November
• Formally challenging the Central Bank of Ireland’s decision regarding the acquisition of Ava Trade

Current trading and outlook

• Average daily revenue in the Gaming division for the first 27 days of Q4 2015 up 14% on Q4 2014 (10% on a constant currency basis excluding acquisitions and adding back the impact of the UK POC tax) and flat on Q3 2015
• In the 19 trading days to 27 October 2015, the Financials division saw both active CFD customers and FTDs for CFDs, up over 20% against the same period in 2014
• Confidence in continued momentum and strong growth for the remainder of 2015 and beyond

Mor Weizer, Chief Executive Officer of Playtech, commented:

“Playtech delivered a strong operational performance in the third quarter with reported growth of 47% and underlying growth of 17%. Three quarters of our growth in Q3 came from regulated markets which now account for over half of all group revenues.

“Our Gaming division continues to enjoy double-digit underlying growth with our strong pipeline of opportunities giving us confidence in maintaining our momentum. Our Financials division had a strong quarter driven by customer acquisition, with a focus on our direct marketing channels, and we hope to complement our growth with the completion of the acquisitions of Plus500 and Ava Trade.

“Given the strength of our business and the momentum that we are enjoying, we have confidence for the remainder of 2015 and beyond.”

Source: Playtech – Q3 trading update

---