Financial Results Show Playtech Thrives for 2015Published March 1, 2016 by Lee R
The new financial division looks well-equipped to sustain expansion for Playtech.
The big gain was in revenue, which increased 38% year-on-year to reach €630.1 million. Adjusted EBITDA gains showed a rate of €251.9 million in 2015 for a jump of 22% from the €207.1 million reported for the previous year. Adjusted net profit jumped 8% year-on-year to €205.9 million.
Net Profit Hiccup
However, reported net profit was down 3% year-on-year to €135.8 million, meaning that adjustment to new regulations such as Point of Consumption have to be fully integrated into further efforts. Nonetheless, Playtech has plenty to work with, showing a cash balance of €857.9 million at the year's end.
Gaming Division Picks up Slack
The gaming division drove a lot of growth. Performance figures show a double-digit increase in regulated markets, outpacing the growth of the company's entire .com business last year.
From all regulated markets, Playtech's gaming turnover accounted for 41% of overall proceeds, up from 36% of overall gaming revenues in 2014. The essential mobile component brought in 21% of the overall software revenue generated by the company in 2015.
With prominent casinos in its stable such as EuroGrand, 777 and Omni, Playtech reported its strongest territorial growth in particularly strong in the UK. A second boost to Playtech's success came from the wealth of new license agreements it forged last year, with over 10 that included Mr Green, win2day, and Sun Bingo.
Financial Division Sustains Expansion
A key measure came from the newly formed financial division at Playtech, indicating how financials will provide essential metrics for reflecting not just the rate of growth for a top company such as Playtech, but the most fertile areas for further expansion.
Playtech’s new financial division, it posted full-year revenue of $100.2 million and adjusted EBITDA of $17.8 million. The EBITDA margin stayed steady at 26% while Playtech adapted its business model to increase compliance in the tightening regulatory environment of today.
More in 2016
Despite the shifts, Playtech chairman Alan Jackson expressed his encouragement at the strong results the company maintained, attributing the gains to new omni-channel product offerings and an improved business model.