Playtech, a provider of online gaming software to betting companies such as Ladbrokes Plc, has been diversifying by acquiring financial trading businesses and is expected to complete a 459.6 million-pound acquisition of Plus500, a trading platform, by September 30.
Gambling software company Playtech reported strong growth in profits in its first half, ahead of its acquisition of Plus500.
Playtech’s current trading outlook remains very positive as daily revenues for igaming services are up 15% on its corresponding Q3 2014 period.
Earlier today Playtech reported its financial metrics for the first half of 2015, with the data shedding light on the performance of the newly established Financial division of the group.
The FTSE 250 listed company, saw a revenue rise of 33% to €286 million (H1 2014 – €214 million), as it recorded strong growth in all operating regions and from new and existing clients.
Chairman Alan Jackson said: “The progress we have made gives me great confidence that the sustained momentum in our business will result in further growth in 2015 and beyond”.
However, earnings before interest, tax, depreciation and amortisation fell 23% to $55.5 million, while net profit also slumped 25% to $40.6 million.
Commenting on the declining profits, Plus500’s CEP Gal Haber did note that the firm had achieved profitability in each month of the quarter, as he stated, “Despite the disappointing regulatory setback in the second quarter, the Group was profitable in every month in the first half and our business model continued to be cash generative”. And although the deals with Plus500 and AvaTrade have yet to be completed and their results to have an impact on the overall performance of Playtech, today’s data reveals the stats for TradeFX (Markets Limited). The compliance problems triggered a dramatic slide in Plus500’s high-flying stock, ultimately leading the broker to accept a 400p bid to be acquired by Playtech.