The sale of William Hill Online will finance future acquisitions said Playtech CEO Mor Weizer.
Playtech Cyprus Ltd. (LSE:PTEC), controlled by Teddy Sagi, said that it plans to make more acquisitions, in publishing interim results, which show flat profits on higher revenue for the first half of 2013. It added that management is highly confident of achieving the full-year market expectations.
Revenue rose 15% to €176.8 million in the first half from €153.8 million in the corresponding half of 2012, and adjusted net profit edged up 0.5% to €84.9 million (€23.90 per share) from €84.5 million. Excluding the share of profit from William Hill Online, acquisitions made in the past 18 months and cost and revenue relating to Skywind Holdings, net profit rose 11% to €69.7 million in the first half from €62.8 million in the corresponding half.
Playtech’s cash balance quadrupled to €576.2 million at the end of June from €139.3 million a year earlier.
Playtech chairman Roger Withers, who is stepping down, said, “The group is particularly pleased with the outcome of the sale of its stake in William Hill Online earlier this year for €492.4 million, delivering a cash-on-cash return of more than 3.5 times, including the share of profits received and excluding software royalties.”
“Since receiving the proceeds from the sale of Playtech’s stake in WHO, the Board continues to seek opportunities to invest in other bolt-on acquisitions, along with more strategic alternatives to grow and develop the business, ” said Playtech CEO Mor Weizer.
Playtech’s share price rose 0.2% on the London Stock Exchange today to £6.62, giving a market cap of £1.93 billion.
Published by www.globes-online.com