Cyprus-based poker and casino games software developer Playtech released its maiden first-quarter results update this week, highlighting 150% growth in revenues in the same period in 2005.
Total Q1 revenues for 2006 were US$20.7m, from US$8.4m on the same period last year.
Casino revenues make up the bulk of Playtech’s revenues, bringing in US$18m, up from US$7.6m on Q1 2005 and US$13.4m on Q4 2005. Poker revenues were US$2m for the quarter, from US$166,000 on the 12-month period and US$1.2m on Q4 2005.
With the majority of its revenue generated by its casino products, Playtech was keen to emphasise its renewed focus on its poker offering and that the contribution was “particularly encouraging”.
With the Asia-Pacific market contributing 21% of Q1 revenues, nearly as much as the 24% from the European players, Avigur Zmora, chief executive of Playtech, highlighted the success of his company’s “strategy to create a more balanced geographical business portfolio. Our drive into the exciting and fast growing Asia-Pacific market is showing clear results”.
Zmora added US players had contributed around 50% of total revenues, down from 67% on the same quarter 12 months ago.
House broker Canaccord Adams issued a Buy note for the software firm and highlighted the company’s re-launched poker network at the end of 2005, having addressed “infrastructure problems and capacity issues”.
Analyst Greg Harris said: “Licensees have now begun to aggressively market the new platform. Although we believe penetrating the upper ranks of the online poker market will be a difficult task, Playtech’s network has the potential to leverage strong brands and access significant marketing budgets.”
The brokerage firm also highlighted Playtech’s push into the Asia-Pacific market, which it said represented the “fastest-growing internet gaming market” and that the software firm’s “competitive revenue share agreements made it an attractive provider. Playtech has acquired more than 29 licensees in the past three years and never lost one to a competitor”.
Source : egr magazine
