Playtech: Results for the year ended 31 December 2015 

Playtech (LSE: PTEC) today announces its full year results for the year ended 31 December 2015, together with a trading update for the period to 22 February 2016.

Financial highlights

* Adjusted numbers relate to certain non-cash and one-off items including amortisation of intangibles on acquisitions, professional costs on acquisitions and irrecoverable deposit and professional fees on abandoned acquisitions, finance costs on acquisitions, change in fair value of available-for-sale investments in the income statement, non-cash accrued bond interest, provision against irrecoverable cash and additional various non-cash charges.  full reconciliation between the actual and adjusted results is provided in Note 5.

** Attributable to the owners

• Total revenues up 38% vs 2014 on a reported basis:
  1. revenue growth of 26% (excluding acquisitions / adding back the impact of the UK POC tax)
  2. 16% growth on a constant currency basis (excluding acquisitions / adding back impact of the UK POC tax)
• Strong growth in adjusted EBITDA with similar underlying adjusted EBITDA margin
• Full year dividend per share up 8%, in-line with growth in adjusted net profit
• Cash balances at year end of €857.9m
  1. active discussions for a number of potential acquisitions in the Gaming division
  2. in the absence of suitable acquisitions, consideration will be given to returning cash to shareholders
• Further strengthening of the Board with appointments of Paul Hewitt and John Jackson

Operational highlights

Gaming division

• Strong underlying performance with double digit growth excluding acquisitions, impact of POC, white-label and currency effect
• Regulated revenues growing faster than .com
  1. 41% of Gaming revenues from regulated markets (2014: 36%)
  2. strong growth in the UK driven by Sky, GalaCoral, Ladbrokes, Betfair and white-label customers
• 10 new licensees signed in 2015 including Sun Bingo, Marca, win2day and Mr Green together with further product penetration in customer base
• Landmark exclusive agreement signed with DC Comics after the year end
• Strong pipeline with significant wins expected in 2016

Financials division

• Pro-forma full year revenue of $100.2m with post-acquisition revenue contribution of $66.5m (€60.0m)
• Total active CFD customers up 30% over 2014, with first time depositors (FTDs) up 25%
• Adjusted EBITDA since acquisition of $17.8m (€15.9m) with margin of 26% due to lower volatility and improvements to business model to further enhance compliance in a tightening regulatory environment
• Improvements made to business model to impact 2016 revenue growth and margin

Current trading and outlook

• Average daily revenue in the Gaming division for the first 53 days of Q1 2016 was up over 12% on Q1 2015 (18% at constant currency) and up over 2% on Q4 2015 (7% at constant currency) mainly due to growth across the business including improved commercial terms and new customers in Asia
• Markets Limited has seen a strong start to 2016 driven by strong volatility with positive momentum from direct business following improvements to business model
• Momentum in the business and strength of pipeline provides management with confidence in strong growth in 2016 with stronger growth in the Gaming division offsetting lower growth in the Financials division

Alan Jackson, Chairman of Playtech, commented:

“Whilst 2015 was an incredibly busy year for Playtech, our operational performance was stronger than ever, delivering reported revenues up 38% and up 26% on an underlying basis.

“The Gaming division continues to lead the industry and drive our growth. Our pipeline of opportunities continues to be very strong and we expect significant wins in 2016, led by our pioneering omni-channel offering and driven by existing and newly regulated markets. Our newly created Financials division is developing well and we have further improved its business model.

“We have many opportunities for further growth, both organically and through M&A, with active discussions on a number of potential acquisitions in the Gaming division. Should suitable acquisitions not be available, consideration will be given to returning cash to shareholders as we look to maintain an efficient capital structure.

“Taken together, we are confident in strong growth in 2016 and beyond.”

Source: Playtech

Playtech (LSE: PTEC) announces the appointment of Non-Executive Director, John Jackson, as Chairman of the Board’s Remuneration Committee with immediate effect. He succeeds Non-Executive Director, Paul Hewitt, who remains Chairman of the Risk and Compliance Committee; and a member of the Remuneration Committee; Audit Committee; and Nominations Committee.

The Company also announces that Playtech’s Chairman, Alan Jackson, stood down as a member of the Audit Committee on 22 February. This change confirms the Company’s compliance with the UK Corporate Governance Code. Non-Executive Directors, Andrew Thomas, Paul Hewitt and John Jackson remain members of the Audit Committee.

Source: Playtech

Playtech (LSE: PTEC) is pleased to announce the appointment to the board of John Jackson, with effect from 1 January 2016. Mr. Jackson will sit on the Board’s Remuneration Committee; Risk and Compliance Committee; Audit Committee; and Nominations Committee.

At the same time, the Company also announces that non-executive Deputy Chairman, Hilary Stewart-Jones, has resigned from the Board to pursue other business interests, with effect from 31 December 2015.

Mr. Jackson’s previous roles include group Chief Executive of Jamie Oliver Holdings Limited from 2007 to 2015; group Retail and Leisure Director of Virgin Group Limited from 1998 to 2007; group Chief Executive of Semara plc from 1994 to 1998; and Managing Director of The Body Shop International plc from 1988 to 1993. Mr Jackson is a Chartered Certified Corporate Accountant, (FCCA) qualifying in 1971.

He is currently non-executive Chairman of Rick Stein Group; a senior independent director of Game Digital plc; and a non-executive director of Wilkinson’s Hardware Stores Limited.

Pursuant to its obligations under the listing rules of the UK Listing Authority, Playtech notifies that Mr. Jackson is currently a director of Game Digital Plc and, in the last five years, and been a director of Luminar Plc. There are no details requiring disclosure in respect of Mr. Jackson under listing rule 9.6.13 (2) to (6) of the UK Listing Authority.

Commenting on the Board changes, Playtech Chairman, Alan Jackson, said:

“I am delighted to welcome John to Playtech’s board in the important role of non-executive director. He brings a wealth of consumer industry experience to the Company, having worked with some of the most iconic brands of the last 30 years. This, combined with his strong accountancy and finance background, will prove invaluable to Playtech’s continued growth.

“The board is grateful to Hilary for her service during a period of continued growth and diversification at Playtech. Her contribution has been of huge value to the business and we wish her every success in the future.”

Source: Playtech

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