Playtech Plc · LSE:PTEC
Playtech — H1 2007 Earnings Presentation
22 slides from Playtech's earnings presentation, Sep 4, 2007
Slide 1: Interim results for the six months ended 30 June 2007
Presentation to Analysts Interim results for the six months ended 30 June 2007 4th September 2007 1
Slide 2: Team
Team • Roger Withers - Chairman • Avigur Zmora - Deputy Chairman • Mor Weizer - Chief Executive • Shuki Barak - Chief Financial Officer 2
Slide 3: Agenda
Agenda • Roger Withers - Introduction • Mor Weizer - Operating Review • Shuki Barak - Financial Review • Mor Weizer - Outlook • Roger Withers - Summary • Questions & Answers 3
Slide 4: Financial Highlights
Financial Highlights • Total Revenues up by 80% to $44.0 million (2006 - $24.5 million excluding US revenues) • Casino revenues up by 53% to $32.6 million (2006 - $21.3 million excluding US revenues) • Poker revenues up by 275% to $10.5 million (2006 - $2.8 million excluding US revenues) • Current m
Slide 5: Operational Highlights
Operational Highlights • Acquired Tribeca assets fully integrated making Playtech the world’s largest independent online poker network • 12 new software licensees during the first half of the year - eight of which migrated from Tribeca - a level which historically has only been achieved over the cou
Slide 6: Development Capacity
Development Capacity • Move to product based development centres • Successful integration of the new development centre in India • Bulgarian subsidiary now fully established • Successful integration of the new production centres in the Philippines supporting licensees’ penetration efforts • Faster t
Slide 7: Product Development
Product Development • Poker – the world largest independent network • Casino – continuous development of the flagship product • Bingo – upgraded downloadable version and new flash version • Asian P2P games – under pilot with a potential Asian licensee • Videobet – introduction of a new “switchable”
Slide 8: Financial Review
A playic) Financial Review
Slide 9: Profit & Loss
Profit & Loss Six months ended 30 June 2007 2006 Change $’000 $’000 % Revenues 43,966 46,178 (5%) Operating Expenses (8,553) (3,237) 164% Sales & Marketing (5,859) (3,746) 56% Development Costs (769) (395) 95% General & Administrative (4,222) (9,132) (54%) Operating Profit 24,563 29,668 (17%) Financ
Slide 10: Revenue by Quarters – Excluding US
Revenue by Quarters – Excluding US Million US$ 25.0 20.0 15.0 10.0 5.0 0.0 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Casino Poker Others 10
Slide 11: Royalties by Month
11 07-2007 06-2007 05-2007 04-2007 03-2007 02-2007 01-2007 12-2006 11-2006 10-2006 09-2006 08-2006 07-2006 06-2006 05-2006 04-2006 Royalties by Month 03-2006 02-2006 01-2006 12-2005 11-2005 10-2005 - 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 Million US$
Slide 12: Revenues by Product
Revenues by Product YE 2006 Q2 2007 Casino Casino 86% 72% Poker 12% Poker 26% Others Others 1% Bingo 1% Bingo 1% 1% 12
Slide 13: Geographic Diversification
Geographic Diversification* (Excluding US) H1 2006 H1 2007 Europe 49% Europe 68% As ia Pacific 39% Re s t As ia Pacific Re s t of the 22% of the World 9% World 9% *Player revenue generated 13
Slide 14: Cost Breakdown
Cost Breakdown 20.0 18.0 4.2 16.0 0.8 14.0 9.1 5.9 12.0 10.0 8.0 0.4 6.0 3.7 8.6 4.0 3.2 2.0 0.0 H1 06 H1 07 Operating Sales & Marketing Development Administrative 14
Slide 15: Tribeca Acquisition
Tribeca Acquisition • Signed in November 2006 • Migration completed successfully in March 2007 • Estimated Deal cost of $59.5 million out of which: – $41.1 million allocated to the acquired assets, mainly the migrated licensees – $15.8 million allocated to goodwill – $2.6 million allocated to financ
Slide 16: Investment in Foundation
Investment in Foundation • Long term software license signed with Foundation to supply P2P games in China • Two investments made in Foundation shares: – Investment of $7.5 million at a discount of 15% of flotation price – Investment of $6.5 million in zero coupon notes convertible into Foundation sh
Slide 17: Balance Sheet
Balance Sheet June 2007 December 2006 $’000 $’000 Current Assets Cash and Cash Equivalents 78,554 101,403 Other Current Assets 56,802 7,537 Total Current Assets 135,356 108,940 Fixed Assets 3,805 3,015 Intangible and Non-Current Assets 61,720 4,482 Total Assets 200,881 116,437 Current Liabilities 77
Slide 18: Cash Flow
Cash Flow June 2007 June 2006 $’000 $’000 Net Income 28,982 30,490 Depreciation and Amortization 2,840 503 Founders’ Cash Contribution to Employees - 6,566 Employees Stock Options Expenses 1,016 230 Net change in Assets and Liability (1,583) 2,418 Other Adjustments (3,861) (1,065) Net Cash Provided
Slide 19: Outlook
A playic) Outlook 19
Slide 20: Current Trading and Outlook
Current Trading and Outlook • Healthy pipeline of new business coming in the second half of the year • Further penetration into Asia through Foundation and potential licensees • Additional income generated through cross selling opportunities • Progress in the regulation of various jurisdictions crea
Slide 21: Summary
Summary • Strong H1 results • Diversity of licensees base to minimize risks • New products being introduced • New licensees being added • Best of breed • Looking to strong second half • July/August in line with expectations 21
Slide 22: Questions & Answers
A playic) Questions & Answers 22