Online gaming software company Playtech released its 2010 second quarter results last week, reporting a 34% increase (€44.5 million) in gross income from a year ago and a 2% improvement on the first quarter figures from this year.
The company, which is traded on London’s AIM market, saw poker revenues decrease 13% from last year and 15% from the first quarter of this year, owing the slide to the impact of the FIFA World Cup, which took place between June 11 and July 11 in South Africa.
However, growth in Playtech’s casino and bingo operations was more than enough to compensate for the declining poker numbers. Casino revenue was up 34% from a year earlier to €24.9 million, and 3% more than the first quarter of 2010, while bingo revenue had increased by 61% (€2.8 million) over the first quarter figure. The boost in bingo revenue came after Playtech purchased bingo supplier Virtue Fusion in February.
“The second quarter’s performance continues our strong start for the year and provides a solid base for the full year,” said Playtech Chief executive Mor Weizer “Operationally we are well positioned with significant licensee wins such as RAY in Finland and the launch of our new Italian bingo and French poker networks bringing a broad range of well recognized local operators. I am pleased by the continuing growth of Virtue Fusion and GTS and together they will help to mitigate the closure of the French casino market which will be felt in the second half of the year.”
The company’s trading activity also took a hit, down 12% on the second quarter, which Playtech attributed to gamblers focusing on the World Cup event and the typically slower summer season for online gambling. Said Weize, “The decline in current trading is in line with our expectations with sportsbook operators focusing on World Cup betting during the period, and is not anticipated to be a useful indicator of performance throughout quarter three. We continue to see significant growth opportunities over the near and medium term.” Trading for quarter three is already up 20% from last year.
Playtech reported that its share of William Hill Online’s profit was up 43% (€7.6 million) from the second quarter in 2009 and up 4% from the first quarter of 2010. The company partnered with William Hill back in 2008 to develop its online sports book operations, a move that has paid dividends financially.
The software company also announced last week that sports betting operators Snai and Eurobet signed up to join its Italian bingo network. Playtech already provides both with a poker platform on the Italian iPoker network.
