Playtech shares drop as it reports rise in revenue and profits

 
Caitlin Morrison
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Playtech provides online gaming software (Source: Getty)

Playtech has unveiled an increase in revenue and profit during the first half of the year, and hiked its dividend by 10 per cent.

The figures

Revenue rose 25 per cent to €421.6m (£388.6m) in first six months of the year, from €337.7m in the same period of last year.

Net profit increased by 84 per cent to €89.6m from €48.8m, and adjusted earnings per share grew to 36.2 cents from 22.6 cents.

The dividend rose to 12.1 cents from 11 cents.

Why it's interesting

Despite the jump in profit, shares in the gaming technology company dropped by four per cent in early trading.

Playtech, which yesterday announced it would spend $150m (£117m) to expand its financials unit, said it is "confident of a strong performance in 2017 driven by both organic growth and the acquisitions made in 2016 and 2017".

The group said it's expecting "normalised levels of growth in the second half from Asia following unusually high levels of activity in the first half", and noted that average daily revenue in its gaming division in the first 53 days of the current quarter was down nine per cent on an "unusually strong" second quarter.

What Playtech said

"The first half of the year saw Playtech's gaming division deliver strong growth with double-digit underlying growth and recent acquisitions integrated and performing in line with expectations," said Alan Jackson, Playtech chairman.

"Taken all together, this proven platform for growth across the business has again delivered a strong performance and management remain confident of further strategic progress in the second half of 2017."

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