Playtech share price soars to all-time high as revenue and profits hit new record
Gambling software firm Playtech posted record annual revenue and profits yesterday on the back of its acquisitions and partnerships, pushing its shares to an all-time high.
The company reported a 24 per cent increase in revenue to €457m (£332.4m) and an adjusted profit up 28 per cent to €194m during the year to 31 December.
“Playtech has continued to deliver exceptional performance by focusing on consolidating its position as the world’s leading software and services provider to the online gambling industry,” said chairman Alan Jackson, attributing the groups success to its work: “expanding its licensee relationships; creating innovative new content; enhancing its products; and deepening its customer focus.”
The group purchased Aristocrat Lotteries, creating the world’s largest VLT software business, and a 33 per cent stake in BGO, gaining access to a game design studio.
Shares in the group rose 5.28 per cent yesterday to reach an all time high of 777p in London.
“We fully expect management to use the group’s substantial cash flows and balance sheet to acquire regulated revenues, both within its core markets and beyond. For this reason we are happy to remain buyers of the stock,” wrote Peel Hunt analyst Nick Batram on Playtech with a target price of 850p.