BUSINESS

Playtech share of WHO jumps 50 percent in profitability

TAGs: Playtech, William Hill, William Hill Online

playtech logo 1iGaming software firm Playtech saw its share of profit from its joint venture with William Hill post a big increase as it revealed another set of impressive results. The third quarter numbers saw gross income rise 32 percent to €92.7million with total revenues increasing by 30 percent to €79.9m. Breaking it down further casino revenue rose 33 percent to €38.5m, bingo revenue was up 17 percent to €4.4m and videobet revenue increased by 33 percent to €2.9m with services revenues up 38 percent to €26.9m. As for their stake in William Hill Online, it increased in profit by 50 percent to €12.8m and could pour fresh doubt over William Hill’s plan to buy Playtech’s half of the JV.

Commenting on the results, Mor Weizer said: “The positive trend seen in the third quarter has continued into the fourth quarter. Given the expected contribution of new licensees launched, further expected legislation in regulated markets such as Italian slots, the introduction of new products including sports and mobile applications and the advanced discussions the company has held with various significant licensees, we remain very confident and excited regarding the future prospects for the business for this year and beyond.”

William Hill made it be known last month that they intended to exercise their option to buy-out Playtech’s half of WHO. The 29 percent chunk is reportedly worth anything between £230m to £500m and the latest results are only likely to force Playtech founder/largest shareholder/ex-con Teddy Sagi to demand a price nearer the latter figure for the company. Whether Playtech manages to get that price is unclear as they’ve, in the past, been limited to buying at inflated prices and not selling at inflated ones.

The company also confirmed the appointment of a new head of investor relations. Adam Kay, who will take up the post from December 1, replaces Ross Hawley who left the company back in April. Kay has around ten years experience in investor relations with a NYSE and LSE dual-listed jewelery firm among those on his CV.

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