Playtech’s Revenue Streams Shifting to Bingo
Wednesday, 8 May 2013 | Written by Rachel Collins
Playtech is the global market leader in providing online gaming software. Since the company launched in 1999, they have continued to provide the highest quality gaming entertainment in the market. The software company offers a full suite of computer gambling games, including but not limited to online poker rooms, sports betting software, online casinos, online bingo games, online scratch cards, slots and mobile gaming.
Playtech’s iPoker Network has been experiencing diminishing revenues of late with Q1 of 2013 down to €44 million, an 18 percent drop from €5.3 million during the same period the previous year. However, despite the poor year on year trend, revenues experienced a 9 percent rise between Q4 2012 (at €4.02) and Q1 2013. It is thought that this increase was in part due to Betfair moving over to the iPoker network, a process which is expected to be completed by July 2013.
Playtech’s overall figures, however, showed a continuation of their expansion with an increase in the company’s total net revenue to €87.5 million during Q1 of 2013, which is a 16 percent rise on the €75.2 million figure for the same period in the year before.
While making an interim management statement, CEO Mor Weizer told how the company had made a solid start to 2013 and that their performance was mainly driven by their mobile casino and their new LIVE product, in which online players can play with real dealers via camera streams. On top of this, Playtech has recently agreed a deal with Ladbrokes, in which Playtech will provide a full product suite as well as marketing advisory services to the online casino and bookmaker. Ladbrokes are one of the most reputable brands in the industry and Weizer described this deal as a landmark transaction, which puts them in a uniquely strong position going forward.
This deal happened not long after the sale of Playtech’s stake in William Hill Online. The bookmaker will continue to have ties with the software developer as they are still a customer of Playtech’s effective Services team. The resale of the William Hill stake made an excellent return, with a cash-on-cash return exceeding 350 percent. However, Playtech were not the only ones to benefit from this transaction. William Hill’s Q1 profits showed a rise of 8 percent, showing they have also gained from the relationship.
For the first time, revenue figures from bingo games have exceeded takings from their poker platform, according to 2013’s Q1 trading figures. During the previous year, poker revenues fell 18 percent, whereas bingo revenues experienced a 9 percent rise. Both of these figures are completely overshadowed by Playtech’s overall revenues of €87.5 million, an increase of 16% since Q1 the previous year. Playtech’s Casino (€ 44.1 million) and Services (€26.3 million) make up the majority of this figure. Their sports revenues played a significant role in the growth in the company’s growth, with a 128 percent year on year rise to €4.6 million.
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