Strengthened Playtech focuses on customer ‘lock-in’ for 2017

Declaring its full-year 2016 performance, the governance of FTSE-listed Playtech Plc has stated that the firm will now concentrate on a ‘locking-in’ strategy having boosted its sports betting services and added new gaming inventory to its client portfolio.

Posting its full-year 2016 financial summary, Playtech would declare increased corporate revenues of €708 million up 12% on corresponding FY 2015’s €630 million.

Playtech Casino, the firm’s flagship division would contribute €354 million in group revenues, with the company detailing significant contribution from its mobile casino inventory which increased revenues 113%.

Playtech Plc full-year 2016 statement

Despite spending €240 million on reported FY 2016 M&A costs for the acquisitions of BGT (sports), Quickspin (casino games), ECM Systems (bingo developer) and CFH (Forex), Playtech governance has declared a ‘reported net profit’ of €193 million (FY 2015: €135 million).

Closing its 2016 performance, Playtech governance would declare that it had paid €296 million back to shareholders including a €150 million in special dividend with the firm further adding a €50 million buyback program.

Moving forward, Playtech governance is confident of its full-year 2017 outlook, stating that its regulated market strategy has been significantly strengthened by the creation of its Playtech BGT division which will offer best-in-class sports betting provisions for omni-channel operators.

Commenting on 2016 corporate performance, Alan Jackson, Chairman of Playtech said;

“The Gaming division once again delivered very strong growth. Sports saw a good second half performance following the acquisition of BGT with the newly formed Playtech BGT Sports bringing together all aspects of the Playtech’s sports offering creating a fully integrated, best-in-class sports betting technology. 2016 also saw the signing of more than ten new customers with ten new customer go-lives. 9 of out of 10 top customers are now on long-term contracts with Paddy Power Betfair, William Hill, Rank and Betfred all renewing in the past few months.

“The year was a strong year for M&A with €240 million spent on acquisitions including BGT, CFH, Quickspin and ECM. In addition to this, reflecting the strength of Playtech’s cashflows and flexibility of its balance sheet, €296 million was returned to shareholder including a €150 million special dividend and €50 million through a share buyback, with no impact on its M&A capabilities. In accordance with the new progressive dividend policy adopted in 2016, the full year 2016 dividend has been increased by 15%.”