On Thursday, Playtech, which owns and operates the popular iPoker Network, released its financial figures for the fourth quarter of 2008. The highlight was word that the company’s revenues had skyrocketed to €111.5 million during the year 2008, up 70% from €65.7 million in 2007.
Playtech is traded on the London Stock Exchange under the symbol “PTEC.” On the news of the company’s successful 2008, its stock rose €4.75, or 1.28%, to €375.00 during the day on Thursday. Over the past 52 weeks, PTEC has fluctuated between €292.25 and €558.00. Its price wavered wildly on Thursday, fetching anywhere between €370.00 and €392.25. It was propped up by news that fourth quarter revenues were €31.5 million, up 52% from the €20.7 million brought in during the same period in 2007.
The company derives much of its income from casino and poker. Casino revenues during the fourth quarter of 2008 were €22.1 million, up 52% from the fourth quarter of 2007. Its iPoker Network revenue was €8.6 million during the final quarter of 2008, up 43% from the same period in 2007. Playtech’s Chief Executive Officer, Mor Weizer, commented in a statement released on Thursday, “Once again, we have enjoyed a successful quarter both operationally and strategically as we continue to grow the business and make the most of the opportunities presenting themselves.”
During the fourth quarter of 2008, Playtech announced a new business partnership with William Hill, which is also traded on the London Stock Exchange under the symbol “WMH.” On the two companies working together, Weizer revealed, “We are particularly pleased with how smoothly the integration of the William Hill joint venture has progressed, which bodes well for this important strategic Company development. The Company has met management’s demanding expectations and we are confident that Playtech will meet its targets for the full year.” The integration of William Hill and Playtech was completed earlier this month and the agreement between the two companies stretches for five years.
Revenue derived from Asia was up significantly for Playtech during the fourth quarter of 2008. In fact, revenue from the region ballooned by 141% in the fourth quarter of 2008 in comparison to the same period in 2007. Revenue from Europe rose 60% over the same time period and revenue taken in from the rest of the world was boosted by 38% year over year.
The iPoker Network, whose sites include CD Poker, Chili Poker, Mansion Poker, Noble Poker, Sun Poker, and Titan Poker, is gearing up for its $2.5 million guaranteed tournament on March 8th. The network-wide promotion has a healthy buy-in of $1,580 and satellites start as low as $1.21 for those who cannot afford the four-digit price tag. On Wednesdays and Sundays, the network offers a $109 rebuy tournament with at least three seats to the $2.5 million guaranteed event up for grabs. On Tuesdays, Thursdays, Fridays, and Saturdays, a $27.50 rebuy awards one seat for every $1,580 in the prize pool (it does not guarantee a certain number of seats).
Playtech also successfully entered the Italian poker market, which is now regulated. According to its financial release, “Current results indicate that the Italian poker network has proven to be significantly revenue enhancing and above management’s expectations.” In September, Playtech announced that it had partnered with Sisal SpA, a 60 year-old company in the Italian market. Around the same time as the Sisal SpA acquisition, Playtech also added Snai and Gala Coral Eurobet, further increasing its presence in the European country.
Earlier this year, Playtech announced that Avigur Zmora had stepped down as “Director of the Company.” However, he will take on the role of consultant, effectively remaining in an advisory role. CryptoLogic, one of Playtech’s rivals, is shedding itself of its online poker network and sending its customers to Boss Media. CryptoLogic will now battle Playtech in casino software development.
