Playtech Posts Growth In H1 2017 ReportTia Winter | 30 August 2017
Global gambling game and service provider Playtech has revealed its financial results for the first half of 2017, noting an impressive 25% increase in its year on year profits. This figure is way above many analysts’ expectations for the company, showing the potential for even more growth over the second half of the year.
In its mid-year fiscal report, Playtech reported revenues of €421.6 million in total, beating its previous H1 2016 total by €83.9 million. The firm’s adjusted net profit almost doubled during the period in review, growing 60% from H1 2016 to €125.5 million in the period ended June 30, 2017.
Playtech’s impressive performance across all of its key sectors has resulted in a 19% increase in the group’s earnings before interest, taxation, depreciation, and amortisation (EBITDA). This financial indicator grew from €143.8 million in 2016 to €170.9 million this year.
Playtech Announces $150m Purchase Deal
In a statement released by the company along with its financial figures, Playtech Chairman Alan Jackson noted that the strength of the firm has once again been demonstrated by its strong H1 performance, which was driven both by recent acquisitions and underlying growth.
As always, the chairman said, Playtech’s performance has generated large cash revenues, enabling a 10% increase in its interim dividend, which is in line with the current progressive dividend policy.
This news has come just a day after Playtech confirmed a potential $150 million deal to purchase intellectual property and clients from market broker ACM Group in an attempt to expand its financial trading operations.
Under the terms of the deal, Playtech will pay an initial $5 million, followed by the remainder of the outstanding $145 million over the course of the next three years.
Playtech Managers Expect Continued Growth In H2
Jackson also added that as with Playtech’s gaming division, its financials momentum has continued with improvements across all key verticals.
The acquisition of assets from Alpha will bring the firm a strong new B2B revenue source, while the creation of TradeTech Group as its corporate brand is an important milestone, and reflects the firm’s expansion towards a complete B2B financial trading solution.
The chairman also noted that considering all of these indicators together, this has become a proven platform for the growth of Playtech’s business, which has again performed well. Management is confident that Playtech’s strategic processes will continue to be fruitful in H2, he said.