Playtech has made several strides over the past two years to bolster its business and expand into new regulated markets. Its efforts have paid major dividends and the software company is seeking to build upon this success.
The software giant posted a 16% increase in the first quarter of the 2013 fiscal year with a total €102.5 million in revenue. Playtech’s online gambling division posted a 28% increase from 2012 Q1 by generating €44.1 million, which represented nearly half the earnings of the company. In addition to the online casino revenues, the company’s support services division posted a small 2% increase from last year’s figures.
Within the online gambling division, the sports book sector was the most successful venture for the company. Revenues for the sportsbook increased by 128% to €4.6 million and saw a strong contribution from its mobile offering, Mobenga. Online bingo was also considered a success for the first quarter with revenue increases of 9% to €4.4 million.
Despite the overall success in the online gambling division, poker revenues continued to decline with an 18% drop from 2012 Q1 figures to €4.4 million. This trend has been a bit troubling as the online poker division saw an 18% decrease in revenue in the fiscal year 2012. Although the company has seen a steady decrease in revenue, the iPoker network has continued to be the gold standard for network poker in Europe and generally holds the second or third spot in Poker Scout rankings. The online poker division hopes to see increases in its revenue following the inclusion of Ladbrokes, which is considered a major skin.
In addition to its European business, the Asia-Pacific region continues to be a solid contributor to the company’s growth. Playtech has also initiated talks with regulated states in the US in order to enter the soon to debut market. Nevertheless, the European market still maintains the majority of the business and the company hopes to expand upon its presence.
Playtech has already made some recent business deals to maintain that stronghold on the European market. It recently sold its 29% stake in William Hill Online for £424 million. Also, the company recently agreed to a licensing deal with Ladbrokes, which will see the Gibraltar-licensed company use Playtech’s technology and marketing services.
CEO Mor Weizer has stated that the company plans to seek alternative strategies to increase revenues and expand its business to the global market.
“With the completion of the sale of our stake in William Hill Online, we are focused on exploring strategic alternatives that will enable us to continue the growth and development of the business,” Weizer stated to eGaming Review Magazine.
Playtech has a bright future and it hopes to grow stronger.