Playtech Plc · LSE:PTEC
Playtech — H1 2006 Earnings Presentation
24 slides from Playtech's earnings presentation, Aug 24, 2006
Slide 1: Presentation to Analysts
Presentation to Analysts Interim results for the six months ended 30 June 2006 24th August 2006 1
Slide 2: Agenda
Agenda • Roger Withers - Introduction • Avigur Zmora - Highlights • Shuki Barak - Financial Review • Avigur Zmora - Operating Review & Outlook • Roger Withers - Summary • Questions & Answers 2
Slide 3: Highlights
Oh Highlights
Slide 4: Financial Highlights
Financial Highlights • Total Revenues up 139% to $46.2 M (2005: $19.3 M) – Casino Revenues up 129% to $40.4 M (2005: $17.6 M) – Poker Revenues up 851% to $4.8 M (2005: $0.5 M) • Operating Profit* up 166% to $36.5 M (2005: $13.7 M) • Net Profit* up 172% to $37.3 M (2005: $13.7 M) • Net Profit Margin*
Slide 5: Operational Highlights
Operational Highlights • Greater Geographical Diversification* – USA has decreased from 62% in 2005 to 49% in 2006 – Asia has increased to 20% in 2006 from 11% in 2005 – Europe has increased to 25% in 2006 from 20% in 2005 • Continued growth of licensee portfolio – 42 licensees operating 137 game si
Slide 6: Financial Review
Oh Financial Review
Slide 7: Profit & Loss
Six months ended June Profit & Loss 2006 2005 Change $’000 $’000 % Revenues 46,176 19,300 139 Operating Expenses* 3,174 2,105 51 Sales & Marketing* 3,692 2,690 37 Development Costs* 374 456 (18) General & Administrative* 2,474 357 593 Operating Profit* 36,464 13,692 166 Financing Income 1,076 10 10,
Slide 8: Revenue and US Exposure
Revenue and US Exposure Asian operators focus on World Million $ 65% Cup 45 60% 35 55% 25 50% 15 45% 5 H1-05 H2-05 H1-06 Total Revenues Percentage of income from US players 8
Slide 9: Revenues by Product - H1 2006
Revenues by Product - H1 2006 Casino 87% Poker 10% Others 1% Bingo 9 2%
Slide 10: Revenue by Product - Growth
Revenue by Product - Growth Million $ 50 40 30 20 10 0 H1-05 H2-05 H1-06 Casino Poker Others 10
Slide 11: Geographic Diversification* - H1 2006
Geographic Diversification* - H1 2006 USA 49% Europe 25% Asia 20% Rest of the World 2% Canada 4% 11 *Player revenue generated
Slide 12: Geographic Diversification* (cont.)
Geographic Diversification* (cont.) 70% 60% 50% 40% 30% 20% 10% 0% USA Europe Asia H1 2005 H1 2006 12 * Player revenue generated
Slide 13: Cost Breakdown*
Cost Breakdown* • Number of employees up by 40% to 277 (2005 – 198), Revenue up by 139% • In 2006, total development costs were $1.4 M, out of which $1.0 M has been capitalized Million $ 10 2.5 8 0.4 0.4 6 0.5 3.7 4 2.7 3.2 2 2.1 Includes provision 0 of $1 M for H1-05 H1-06 performance bonus Operati
Slide 14: Founders' Cash Contribution to Employees
Founders’ Cash Contribution to Employees • The founders of the Company gifted $6.6 M to a staff trust fund for distribution to the Company’s employees • This amount does not impact the Company’s cash flow • Accounting implementation: – The Company accounted for this contribution as a capital contrib
Slide 15: Balance Sheet
Balance Sheet June 2006 December 2005 $’000 $’000 Current Assets Cash and Cash Equivalents 89,857 17,995 Other Current Assets 6,452 4,526 Total Current Assets 96,039 22,521 Fixed Assets 1,460 934 Intangible and Non-Current Assets 2,886 1,448 Total Assets 100,385 24,903 Current Liabilities 8,164 5,10
Slide 16: Cash Flow
June 2006 June 2005 Cash Flow $’000 $’000 Net Income 30,490 13,690 Depreciation and Amortization 503 182 Founders’ Cash Contribution to Employees 6,566 - Employees Stock Options Expenses 230 - Net change in Assets and Liability 1,342 (436) Other Adjustments 11 (2) Net Cash Provided by Operating Acti
Slide 17: Cash from Operations Compared to Operating Profit*
Cash from Operations Compared to Operating Profit* Million $ 40 $39 M 30 $37 M 20 Operating Profit Cash from Operations 10 $14 M $13 M 0 H1-05 H1-06 17 *Excluding founders’ cash contribution to employees and options charge in the amount of $6.8 M
Slide 18: Operating Review & Outlook
Operating Review & Outlook 18
Slide 19: Cross Selling Opportunities
Cross Selling Opportunities 19
Slide 20: Product Pipeline
Product Pipeline • Pachinko • Mahjong • Asian card games • New progressive concepts • On-going production of new games • Exclusive and branded games 20
Slide 21: Licensees
Licensees • Expected to launch 6 new licensees this year, 3 targeting Asia, 1 targeting South America, 1 targeting North America and 1 targeting Europe • Cross selling - 5 licensees launched new products in the last 12 months • Profile of potential licensee – $150k in royalties per month within 12 m
Slide 22: Building for the Future
Building for the Future • Current number of employees 277 • On going recruitment 25 • Playtech Bulgaria 20 • Playtech Academy 25 • Expected number of employees by the end of 2006 347 22
Slide 23: Summary
Summary • Strong H1 results • Continued reduction of US exposure • Diversity of licensees base to minimize risks • New products being introduced • New licensees being added • Current trading 23
Slide 24: Questions & Answers
Oh Questions & Answers 24