Playtech share price dips despite profit growth ahead of Plus500 acquisition
Gambling software company Playtech reported strong growth in profits in its first half, ahead of its acquisition of Plus500. However, the company's shares dipped two per cent down in mid-morning trading.
The figures
Playtech reported revenues of €286m (£210m) in the six months to the end of June, a 33 per cent increase on the same period last year.
Adjusted pre-tax earnings before interest, depreciation and amortisation climbed 15 per cent on last year to €112.9m.
Earnings per share increased 19 per cent to 39.6 cents.
The company also announced plans to hike its dividend by eight per cent to 9.6 cents per share.
Why it's interesting
The company, which makes the software for the online offerings of bookies such as William Hill, said its focus on regulated and soon-to-be regulated markets was driving growth.
Read more: Playtech tumbles with £250m share placing
It's been on a shopping spree in recent months, but expects to complete its acquisitions of Plus500 and Ava Trade in September (subject to regulatory approval).
As part of its acquisition drive it's also bought TradeFX – subsequently renamed Markets Limited, which it said made a good start to the third quarter.
Read more: Plus500 shareholders give Playtech takeover the green light
What Playtech said
Alan Jackson, chairman of Playtech, said:
We have made significant progress against all aspects of our strategy during the first half of the year. We have completed a series of strategic acquisitions to create and enhance our new financials division, a high-growth and regulated industry, and our continued operational delivery across all business segments has translated into a strong financial performance across all key metrics, with revenues up by a third in the half year.
Our gaming business continues to go from strength to strength with our strategy of focussing on regulated markets driving growth. Our pipeline remains strong, with significant opportunities across all geographies, as customers seek to benefit from our market-leading omni-channel offering and our best-of-breed products in each and every product category.