BUSINESS

iPoker the only negative number on Playtech’s Q3 earnings report

TAGs: Playtech, teddy sagi

playtech-revenue-risesOnline gambling software supplier Playtech saw poker revenue fall by one-quarter in Q3, spoiling an otherwise perfectly upward earnings report.

Playtech reported overall revenue up 47% to €170.9m in the three months ending Sept. 30, although a good chunk of the gain was attributable to its new financial services division, which added €27.5m to the total. Without the new add-ons, Playtech’s gaming operations were up a more modest 23% to €143.4m.

Playtech’s gaming division was led by its casino vertical, which gained 21% year-on-year to €75.4m, while services revenue improved 18% to €40.1m. The struggling iPoker division generated revenue of €2.5m, down 25% year-on-year and off 13% from Q2 2015. All other gaming segments were firmly in positive territory, led by sports betting (€8.9m, +25%), land-based gaming (€8.3m, +134%), bingo (€5.3m, +15%) and ‘other’ (€3m, +88%).

Regulated markets accounted for 73% of the gaming division’s growth in the third quarter, pushing the regulated market share of gaming revenue up five points to 40%. Mobile also flexed its muscle, rising six points to 23% of software revenue.

Playtech’s financials division enjoyed a 158% gain from Q2’s revenue total, while pro-forma growth from Q3 2014 was up 36%. Active contracts-for-difference (CFD) customers rose 21% to 26,400, with first-time depositors up 19%.

Playtech said it expects regulatory approval of its Plus500 acquisition by the end of November and confirmed that the company was formally challenging the Central Bank of Ireland’s opposition to Playtech’s acquisition of the Dublin-based Ava Trade CFD business.

Forbes magazine recently estimated Playtech founder Teddy Sagi’s net worth at $4.4b, up from $2.3b just one year earlier. In addition to being Playtech’s largest shareholder, Sagi has also engaged in a number of lucrative real estate deals in London’s Camden Markets. Forbes says Sagi’s net worth makes him the sixth wealthiest citizen of Israel, up from #15 last year.

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