Playtech Enjoys Financial Upswing Despite Increasing iGaming Regulations

The London Stock Exchange’s Playtech has announced an increase in sales to £389 million for the first half of 2016 despite increased regulations and taxes across the iGaming industry.

Playtech Mor Weizer.

Playtech boss Mor Weizer is looking to build on his company’s recent financial success with more acquisitions. (Image: yogonet.com)

According to the latest financial report from the FTSE250 company, revenue on a constant currency basis for the six months to June 30, 2017, is up 30 percent year-on-year.

From this figure, adjusted earnings before interest, tax, depreciation and amortisations was up 24 percent to £158 million while net profit jumped to £83 million.

Figures Improve Despite Challenges

The positive results come in the face of increased regulation and taxation across the UK and Europe. Despite regulators imposing stiffer operating conditions both on software suppliers such as Playtech and the sites they serve, the company has still flourished thanks to a number of 2016 acquisitions.

Even though Playtech boss Mor Weizer told the Telegraph that its deal with Sun Bingo has been “challenging,” he said that asset is now starting to improve in line with its other major contracts. Indeed, as well as securing a deal with Sun Bingo in 2016, Playtech renewed its contracts with the likes of Paddy Power Betfair, Bet365 and the Greek lottery operator, OPAP.

On top of its moves in the online betting world, the software company recently expanded its interests in the financial sector. On August 23 the company announced it has purchased UK-based brokerage firm, Alpha.

The £117 million deal will see Alpha gradually integrated into Playtech’s growing financial services division which is currently being rebranded as the TradeTech Group.

With the rights for Alpha’s software secured, Playtech will now be able to offer more services and products to professional traders that use its platform.

Activity Keeps Playtech Buoyant

This combination of new moves in the financial world and continued relationships with some of the biggest names in iGaming has helped Playtech improve its market position.

In fact, despite increased regulation having a negative impact on some in the iGaming industry (such as slowed growth for William Hill in 2017), Playtech appears to be thriving.

For Weizer, regulated markets are actually making it easier for his company to make money as one of the leading software suppliers in the business. He also told the Telegraph the more than 50 percent of the company’s sales already come from regulated markets.

In light of its current upswing, Playtech’s boss has stated that he wants to remain an active player in the market and capitalise on the company’s increased turnover.

“We remain acquisitive, we remain opportunistic. Our model works,” Weizer told the Financial Times.

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