Playtech Catching up to PartyGaming?

Playtech, the world’s biggest publicly traded online gaming software supplier, saw further strong demand for its casino and poker games in the first quarter. The company recorded 14.4% growth in revenues over its monthly average in the fourth quarter of 2007, leaving Mor Weizer, chief executive, confident it would meet expectations for 2008. On Tuesday, the group said average daily royalties in January 2008 showed 11.7% growth over the average in the fourth quarter of 2007 and momentum continued in February.

Playtech has expanded recently on the back of the launch of its iPoker network, which has started to catch up with PartyGaming, the online gaming market leader. Revenues for the year to December 31 were in line with expectations, rising from $90.1m to $103.6m (£52.3m).

Pre-tax profit fell from $60.7m to $42.3m, with administrative expenses soaring after investing heavily in research and development. Nevertheless, net cash was $86.5m in spite of a $10.3m investment in CY Foundation and $5m in its customer AsianLogic, the Hong Kong-based group.

Playtech said investment in AsianLogic’s initial public offering on Aim last year had resulted in an unrealised economic gain of $10.9m. The group also expected the upcoming range of Asian games would also boost revenues. It also signed six new licencees so far this year.

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