Demand for Playtech's range of gaming software and network of marketing affiliates remains buoyant. Even after the effect of acquisitions are stripped out, organic sales growth was 22 per cent, with Playtech's casino games and its share of William Hill Online providing the standout performances. But despite Playtech's move to the Main Market, its ambiguous relationship with its founder remains an issue.
These half-year accounts were complicated by an early €42m (£33m) payment, out of a total consideration of €140m, for PT Turnkey Services (PTTS), a company acquired from Playtech founder and dominant shareholder Teddy Sagi. Management says that PTTS fulfilled the criteria for early payment two years ahead of schedule by doubling its cash profits during the two quarters to €40m. No further detail was offered, but PTTS apparently contributed most of Playtech's €52.5m services revenue. Other segments also performed well, Casino revenues grew by 36 per cent to €71.5m, while Playtech's share of profits from the William Hill Online operation was 21 per cent higher at €22.7m.
Peel Hunt forecasts EPS of 46.8¢ for 2012, a 12 per cent upgrade after a better-than-expected first half.
PLAYTECH (PTEC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 387p | MARKET VALUE: | £1.12bn | |
| TOUCH: | 387-388p | 12-MONTH HIGH: | 400p | LOW: 210p |
| DIVIDEND YIELD: | 5.0% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 160¢* | NET CASH: | €63.7m | |
| Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 76.3 | 37.8 | 15.6 | 0.0 |
| 2012 | 154 | 27.0 | 9.00 | 7.8 |
| % change | +102 | -29 | -42 | - |
Ex-div: 19 Sep Payment: 19 Oct *Includes intangible assets of €373m, or 129¢ a share £1=€1.26 | ||||
