Playtech Scores Big in 2016, Future Looks BrightPublished February 28, 2017 by Lee R
New partnerships and strong gaming performance distinguish Playtech’s 2016.
Another iGaming heavyweight’s year-end figures show a company on the rise.
International omni-channel gambling solutions provider Playtech has published its financial results for the full year 2016. The main number of note is the revenue count of €708.6 million, representing a 12% year-on-year jump on reported basis and 20% on constant currency basis.
The company attributed the improvement to the Gaming division, where a 23% casino revenue rise boosted the vertical’s total revenue take to €354.6 million for 2016.
Regulated Market Contributions
Gaming revenue from regulated markets also continued to grow, which is the most important contribution from the company’s iGaming activity online, closing in on a full half of contributions. This year online gaming was at 48%, a point up from last year’s 47% contribution.
Data showing casino revenue from hand-held devices growing 113% for the year. Distribution of mobile software also rose, 80% to contribute a full third (33)% to overall software revenue generated by the company.
Playtech was also pleased with its Sports vertical, where the establishment of the Playtech BGT sports business resulted in a 2% year-on-year increase in sports revenue.
The omni-channel distributor reported strong organic growth for land-based offerings, spurring plans to allocate some of that revenue into other verticals for 2017.
Other vertical performance
Virtual Sports offerings also advanced, though Playtech acknowledged declines in the Bingo and Poker verticals.
Along with focussing on regulated markets for years to come, acquisitions is another key to Playtech strategy moving forward. The company spend €240 million on purchases, including slot development studio Quickspin; sports betting software and solutions provider BGT; and bingo software and hardware producer and supplier ECM Systems for its Gaming division, while acquiring Straight Through Processing brokerage firm Consolidated Financial Holdings to expand Financials.
Playtech Leader Comments
Commenting on the strong 2016 performance of the gaming division, Playtech Chairman Alan Jackson proudly announced that as of the close of 2016, 9 of out of Playtech’s 10 top customers were on long-term contracts “with Paddy Power Betfair, William Hill, Rank and Betfred all renewing in the past few months.”
It should be interesting, and educational, to see how Playtech strategy manifests in 2017.