Playtech Limited released its first quarter 2010 Key Performance Indicators last week, which showed excellent growth over the first three months of 2010. Playtech owns and operates the popular iPoker Network.
The company announced that its gross revenues for the first quarter of 2010 were 29% ahead of the same time period in 2009. Its €43.4 million in gross earnings for the first quarter easily outpaced the €33.7 million earned in the same quarter of 2009. In addition, Playtech’s gross earnings were 13% better than in the fourth quarter of 2009, with almost €5 million more coming in during the first quarter of 2010.
The breakdown of Playtech’s first quarter 2010 earnings shows a strong preference for casino action over online poker. Casino revenues were up 27% for the quarter to €24.2 million versus the €19 million earned in the same span of 2009 and were 17% higher than in the fourth quarter (€24.2 million versus €20.6 million). The company’s poker action decreased slightly year over year, with a 4% drop in revenues. In the comparison with the last quarter of 2009, however, Playtech showed 2% growth in online poker.
Bingo looks to be the next revenue grabbing service from Playtech. In the first quarter 2010, Playtech launched its Italian bingo network and the increase in revenue has been remarkable. In the fourth quarter 2009, Playtech only saw €69,000 in gross revenues from its bingo operations. With the opening of its Italian network, revenues leapt to €1.7 million for the first quarter of 2010.
Playtech will look to expand on this newfound market with additional bingo licenses that are expected to launch later this year. Playtech is also looking to move into the Italian poker market, where cash games are currently the only action, and create an Italian casino in late 2010.
“We have had a very good start the year,” Mor Weizer, Playtech’s Chief Executive Officer, said during the Key Performance Indicators report. “Our final numbers for Q1 2010 reflect substantial revenue growth and build on the strong progress made in the last three months of 2009. Encouragingly, we have also seen continued momentum going into the traditionally slower second quarter. I believe Playtech remains well positioned to add licensees in a number of newly regulating markets and can look to the rest of 2010 with confidence.”
According to PokerScout.com, the iPoker Network is the fourth largest in the online poker world, averaging 4,350 cash game players over a seven-day period. Consisting of such popular poker rooms as William Hill, Paddy Power Poker, Mansion Poker, and Chili Poker, the iPoker Network peaks at over 8,500 cash game players during European evening hours (the network does not accept USA players). The iPoker Network and Party Gaming’s PartyPoker are constantly battling over the third place slot in the market.
Playtech’s stock, which trades on the London Stock Exchange under the symbol “PTEC,” performed well after the announcement of the first quarter financials, trading around 500 pence per share. The recent debt issues in Greece, however, have sent worldwide markets tumbling. As the markets begin to settle after the Greek bailout, Playtech was trading at 456 pence on the London Stock Market at the close of business on Tuesday.
