Playtech Net Profit Up 21% To €112.8 Million In 2011

Israeli gaming software company Playtech Ltd released its full year financial figures today, showing a 21% rise in its net profits to €112.8 million ($147.28m) for 2011 compared to €93.2 million a year earlier.
Other impressive full-year financial highlights reported include a 46% jump in revenue to €207.5 million from €142.3 million in 2010; and a 50% rise in its net cash balance to €137.3 million for 2011 from €68.5 million for the previous year.
Playtech was founded in 1999, and has since grown to become the world’s top online gaming software supplier employing over 1,000 staff and catering to the needs of around 136 gaming sites. Commenting on the latest yearly report, Non-executive Chairman Roger Withers, said:
“These are really exciting times for Playtech which has once again delivered an excellent set of financial results, and has consolidated its position as the clear market leader in the provision of software and services to the online gaming industry.”
Some of the factors contributing to Playtech’s solid 2011 results include successful new products agreements with chief operators such as Betfair, Gala Coral, Paddy Power and Boylesports. Also the company’s four technology acquisitions of Intelligent Gaming, Mobenga, Ash Gaming and Geneity are all performing strongly.
However, one area of Playtech’s business which did not fare quite so well was online poker, which saw a 20% decline in business to €21.8 million from €27.4 million a year earlier.
Looking ahead, Playtech has had positive start to 2012, which is already above
management expectations. As a Playtech statement read:
“Like-for-like growth in daily average revenues for the first nine weeks of 2012 are up over 23 percent compared to the same period in 2011. The daily average revenues versus Q4 2011 on the same basis are over 3 percent ahead.”
Over the past 52 week Playtech’s shares have ranged in value from £2.10 to £3.80. Following the news, Playtech’s share remained fairly static at £3.32, giving the company a market cap of £961.65 million.