Gaming Software firm Playtech posted its 2010 third quarter financial results this week and showed an increase in both gross income and revenue. The company announced gross income at €41.3 million, up 30% compared to the same period in 2009, while its total revenues were up 17% to €32.5 million, compared to €27.7 million in the third quarter of 2009.
For the first nine months of the year, Playtech’s gross income was up 31% at €129.2 million and revenue rose 25% to €105.4 million. Excluding the impact of the company’s French closure following new online gambling regulations, gross income compared with the second quarter was up 1% and revenue was down 2%.
Said Playtech CEO Mor Weizer, “Gross income and total revenues for the quarter held up well over the traditionally quiet summer period, especially when excluding the impact of the closure of the French offshore market, which distorts the historic comparisons. After the seasonal slowdown and the aftermath of the World Cup, September as expected was a stronger month and we see this positive trend continuing.”
Poker once again saw a fall in revenue in the third quarter, down 30% to €5.7 million from €8.2 million in Q3 2009. It was also down 21% from the second quarter of 2010. Over the full year through September, poker revenue was at €21.5 million, down 15% compared to the €25.4 million earned in the same period last year.
Playtech software powers the iPoker Network, which includes sites like Titan Poker, Paddy Power Poker, Bet365, Sun Poker, and BetFred. iPoker contains more than 50 skins, making it the most extensive network in the world. According to traffic tracking site PokerSout.com, the iPoker Network trails only PokerStars, Full Tilt Poker, and PartyPoker in terms of ring game player volume. The site averaged 3,700 cash game players over the past seven days and reached a peak of nearly 7,000 on Thursday.
Revenue from Playtech’s casino, bingo, and William Hill Online operations more than made up for the decline in poker revenue. Casino revenues were up 17% to €21.7 million from €18.5 million in the third quarter of 2009. Bingo revenue totaled €3.1 million, up 11% from the second quarter of this year, reflecting strong growth from Virtue Fusion reinforced by the new Italian bingo network. Meanwhile, Playtech’s acquired interest in William Hill Online produced an €8.8 million profit, up 111% from €4.2 million the year before.
“The recent launches of Betfair casino and our Italian bingo licensees have performed very well from soon after launch, and will be joined by RAY [the Finnish monopoly] in the coming months,” added Weizer. “I am also encouraged by discussions with a number of notable operators, which should deliver a strong pipeline across the product range.”
Ultimately, Playtech decided to shut down its bingo operation this week and announced that two of its biggest earners, Bingo Day and Titan Bingo, would be closing later this month. The news was closely followed by the report that Ruby Bingo would be moving to the full Virtue Fusion software platform.
Bingo Day and Titan Bingo were originally thought to be moving to the Virtue Fusion platform, which is owned by Playtech, but those plans have been put to rest and the two sites will be closed for good by November 15th. Bingo fans can still get their fix at a number of Virtue Fusion sites, including Jackpot Bingo, Ladbrokes Bingo, and William Hill Bingo.
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