Winning Playtech: Gains Consistent with Strategy
Published March 11, 2018 by Lee R
Strategic M and A provided dividends all around at Playtech.
Playtech achieve the growth it needed for 2017 to remain consistent with its strategy coming into 2018.
Revenue Jumps
The key number was total revenue, which accumulated in the 12 calendar months of 2017 to €807.1m ($992.1m) for a nice year-on-year jump of 14% from 2017’s €708.6m.
Corresponding Gains
Other healthy gains showed in adjusted earnings before interest, tax, depreciation and amortisation, whose 322.1m in 2018 improved 7% from 2017; adjusted net profit’s increase of 14% year-on-year to €231.4m; reported net profit’s 28% climb to €248.1m; adjusted diluted earnings per share for the year of 66.8 euro cents (up 14% on last year); and total dividend per share of 10% to 36 euro cents.
Negotiating Headwinds
Playtech had already taken pains to temper expectations with a November warning of uncertain dynamics of some Asian markets and a new contract with Sun Bingo, which Playtech chairman Alan Jackson referred to as “headwinds in both regulated and unregulated operations.”
Dividends
Jackson further effusively pointed out that the revenue generated for 2017 ultimately translated to “a 10% increase to the full year dividend.”
Implementing Strategy
The strategy that Playtech was working with in 2017 and heading into 2018 was to improve the quality of earnings for the group “organically and through M&A,” with Playtech’s effectiveness borne out by a 54% increase in regulated revenue for the year.
Looking Ahead
Jackson further explained his satisfaction with Playtech’s positioning due to the health shown by the core business and the strength of the company’s balance sheet, as consistent with a forward strategy of leveraging M&A to drive growth and diversify the company’s revenue base further in 2018.
New Deal Struck
Playtech’s latest move is a new long-term casino deal with Olympic Entertainment Group (OEG), expanding delivery of trademark Neon technology to the world-wide land-based casino operator that will link over 100 casinos in five countries to a network of approximately 3,500 electronic gaming machines and 150-plus gaming tables in its casino management system.
OEG Head Speaks
OEG Chief Information Officer Oleg Jurtšenko said his company was “looking forward to taking full advantage of Neon by operating the system across all of our international operations,” further lauding Playtech for “understanding of our requirements, modern architecture and willingness to adapt Neon to our needs.”
Outlook
It is always encouraging to see an iGaming company adhere to a clear and effective strategy to achieve gains, and Playtech’s reputation for adapting to customer needs should be the key driver of further successful M and A.
