Playtech posted a 104 per cent increase to €75.1m in total revenues for Q1 2012, as well as confirming it will no longer acquire social B2B and real money gaming assets and instead enter into a software licence agreement for the assets.
This follows the announcement on April 17 relating to the signing of a non-binding memorandum of understanding regarding the potential acquisition of certain social B2B and real money gaming assets and businesses and an equity stake in a related B2C venture from entities in which Teddy Sagi is beneficially interested. The board has since decided to instead enter into a software licence agreement for those assets.
Playtech said it remains committed to the prospects for the impact of entering into the social gaming arena and believes it will aid the its growth in the future. However, the complexity around the process and timing with respect to the company's move to the main market has influenced this decision.
Preparations for Playtech’s planned move to a premium listing on the official list of the London Stock Exchange continue to progress.
Year-on-year growth across all products has been strong, with the exception of poker, which was down six per cent to €5.3m. The company reported an increase of 35 per cent in casino revenues to €34.5m, with bingo up by 26 per cent to €4.4m.
Playtech's chief executive, Mor Weizer, commented: "The services division is performing ahead of management's expectations, which has provided us the confidence to agree a discounted accelerated payment of the PTTS acquisition's initial consideration, while also looking increasingly certain to trigger the additional consideration threshold. We expect the services division to continue growing as the exciting opportunities in markets such as Germany and Spain come on stream. Although we anticipate a seasonal slowdown during the traditionally weaker summer months, I believe that the company is well positioned to maintain the momentum into the rest of the year."
