NICOSIA, Cyprus – (PRESS RELEASE) – Highlights:
- Total Revenues for the quarter increased by 133% compared to the same
period last year and 22% on the previous quarter to $25.4 million
- Casino Revenues for the quarter increased by 121% compared to the
same period last year and 21% on the previous quarter to $22.0 million
- Poker Revenues for the quarter increased by 701% compared to the same
period last year and 30% on the previous quarter to $2.7 million
- As of 30 June 2006, Playtech had 42 active licensees operating a
total of 137 game sites, representing an increase of eight new licensees
and an addition of 34 new game sites compared to the same period last year
and an increase of four new licenses and 22 new game sites on the previous
quarter
- Significant progress made in new products and platforms development -
Videobet, Mobile and Mahjong - enhancing Asian market appeal
- Percentage of player income from the USA continued to decrease -
reduced to 48% from 58% over the same period last year and from 49% in the
previous quarter
- Continuing focus on Asian and European markets. Asian revenues
increased 17% during the second quarter compared to the first quarter of
2006 and European revenues increased by 33% over the same period
Commenting on today's trading update, Avigur Zmora, CEO of Playtech
said: "Playtech has shown very strong growth over the past quarter. Both
Casino and Poker revenues continue to grow and our policy of geographical
diversification continues on track. It is also very encouraging to see the
progress in our development pipeline. We look forward to the second half of
the year with confidence."
Second Quarter Trading Update
Playtech has continued to experience very strong trading in the second
quarter across the Company, despite this period being a traditionally weak
quarter in the online gaming industry. Revenues from Casino, Playtech's
core product, continued to grow faster than the market owing to the high
number of new licensees joining the company and the strong performance of
existing licensees.
Poker revenues, currently 11% of total revenues, showed a significant
increase over Q2 2005, clearly illustrating the effectiveness of the
Company's effort to diverse its product offering. The poker network,
iPoker, is gaining popularity and reached a peak of more than 11,000
concurrent players during the period.
Licensees
New licensees continue to be signed up, which, in line with the
Company's strategy of geographical diversification, predominately cater for
the Asian and European markets. Playtech also continues to work with its
existing licensees to create unique branding and marketing options by
adding new games and game sites.
During the second quarter the Company launched four new licensees,
compared to two in the first quarter of 2006 and three in the second
quarter of 2005. 22 new game sites were also added for both existing and
new licensees in this quarter, compared to six in the first quarter of 2006
and 13 in the second quarter of 2005. The vast majority of Playtech's new
licensees' pipeline caters for the Asian and European markets.
Geographical diversification
The Company continues to add high quality licensees from around the
world with a focus on Europe and Asia. The percentage of players' income
contribution attributable to non-US players has increased during the second
quarter.
Management expects Asia to continue growing its percentage of total
revenues starting in the fourth quarter helped by the release of specific
games targeting Asian players and the launch of new licensees which have
been postponed until after the World Cup.
Playtech continues to maintain its strategy of creating a more balanced
geographical business portfolio. As a result over the past six months it
has launched two licensees catering for Asia, three licensees catering for
Europe and one licensee catering for North America.
Product and platform expansion
Playtech continues to develop products for specific markets worldwide.
Developments in the following products are of note in the second
quarter. - Videobet
Playtech has completed the development of its software for interactive
video terminals and expects to install its software for the first machines
during the third quarter. This marks the Company's first move into land
based gaming markets and allows it to extend the expertise and game
portfolio it has developed with its online casino products. It should be
noted the Company does not intend to build or produce the terminals
themselves at this stage, but to focus on providing the software. - Mobile
Playtech has launched its first real money mobile application as part
of its unified platform, supporting five of its top 2006 online casino
games. The management believe that there is significant potential for this
application in a number of countries, most notably in Asia, and is working
closely with its Asian licensees in preparation to launch a fully operative
customize product for this market by the end of 2006. - Mahjong
As part of its strategy to further penetrate the Asian market, Playtech
has signed an agreement in the second quarter to license exclusive
intellectual property rights to elements of the Mahjong game. Playtech
believes that this new intellectual property will create a strong
competitive edge over competing products in the region. The Company aims to
launch the first phase of its Mahjong product by the end of 2006 and will
make further announcements in due course.
Current trading
We enter the third quarter with confidence. Diversification of the
product portfolio and international expansion remains a key element of the
Company's strategy. Playtech is on the verge of launching a number of new
client sites.
New country and region specific products are close to completion and we
expect to announce the sign up of new licensees and expect the new products
and platforms, including videobet, mobile, Mahjong, along with other Asian
games, to start generating revenue by the end of the year.
