Playtech Revenue Leaps 17% on Casino Growth

Playtech the largest online supplier of online gaming and sports betting software has just posted its first quarter review. The good news was that Playtech’s revenues grew by 17.4%, backed by a strong performance from casino and services, which helped offset a disappointing set of results for bingo and poker. Sports betting is now the third largest revenue stream for this online giant.

Casino Cash-In

Casino was Playtech’s ace up their sleeve with an eye-watering leap of 26% year-on-year growth to €55.4m – reflecting the success of a number of new products. There is absolutely no standing still in this industry. It’s hard to define whether it’s customer demand that drives gaming improvements or the talented programmers who are trying to bring their love of gaming to the masses. In this spirit, Playtech launched a new live casino product during the first quarter and according to CEO Mor Weizer, made “significant advances” in its mobile gaming products. Weizer also implied that this move was part of a deliberate strategy by the company to put up a strong challenge to the already fierce competition.

Other Revenue Successes

The next two categories to show a healthy increase were services revenue and sports betting. The former, helped by the acquisition of PokerStrategy in July 2013 grew 13% to €29.7m. The latter grew 22% to €5.6m, a mere two months after Weizer defined Playtech’s ambition to become a market leader in sports betting solutions.

Not All That Glitters

In the negative column of Playtech’s results was the poor performance of its poker and bingo revenue. Falling by 17% and 14% respectively, this loss reflects an industry-wide trend that seems to be steering away from these games.

Despite this setback, Playtech’s Board remains extremely confident that it can continue its recently excellent year-on-year growth.

Article source: http://www.onlinecasinoreports.com/news/industrycoverage/2014/5/5/playtech-revenue-leaps-17-on-casino-growth.php

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