Playtech H1 revenues up, declares special dividend

Gambling software developer Playtech reported a drop in first-half profit as it took a hit from fluctuations in sterling, but revenue grew and the company declared a special dividend.

In the six months to the end of June, revenues rose to €337.7m from €286m, up 18% or 24% at constant currency.

However, net profit declined to €48.8m from €83.9m, down 42% on a reported basis, but up 84% at constant currency, taking a hit from fluctuations in sterling.

The company declared a special dividend of €150m, or 46 cents per share to be paid in December and lifted its interim dividend by 15% to 11 cents per share.

The gaming division generated revenue of €306.4m, up from €275.4m in the first half of 2015, while the financials division saw revenue of €31.3m compared to €10.6m.

Chairman Alan Jackson said: “The gaming division continues to deliver strong growth, driven by our industry-leading Casino offering. We have ‘locked-in’ future growth with important new licensees signed and significant contracts renewed. Seven of our top 10 licensees are now on contracts which have at least three years remaining and our pipeline of new licensees and structured agreements remains strong.

“First half results from our financials division reflect the full-impact of the transitioning of the business and improvements made due to regulatory changes with Markets now having the right platform for sustainable growth.”