Playtech hits the jackpot in third quarter due to casino gambling

PLAYTECH, the company that provides gambling software to the likes of bet365 and PaddyPower, yesterday said gross income was up 32 per cent on last year in the third quarter, thanks to a strong showing in its casino gaming products and its stake in William Hill.

Shares in the London-listed company, which bases itself in Estonia, rose as much as 5.7 per cent on the news yesterday as its results exceeded forecasts.

Playtech’s revenue in the period was €79.9m (£63.8m), thirty per cent up, while it took in €12.8m from its 29 per cent stake in William Hill’s online business – a rise of 50 per cent.

William Hill is considering buying back Playtech’s share, and has started the process of valuing it ahead of a possible offer next year.

Playtech’s stake is believed to be worth around £400m.

“Regardless of William Hill’s as yet undetermined final decision on the call option we remain committed to our important relationship with William Hill and the continued success of WHO going forward,” chief executive Mor Weizer said.

He pointed to mobile gaming as an important and lucrative growth area for Playtech, as more people shift to placing bets on their smartphones rather than on personal computers.