Playtech Revenues Rise as Dependence on U.S. Decreases
Online gaming software provider Playtech Ltd (PTEC.L) has announced a trading update for the second quarter of 2006, reporting total revenues of US$25.4 million for the quarter, representing a 133 percent improvement over the second quarter of 2005 and a 22 percent improvement over the first quarter of 2006. $22 million of the revenue came from casino licenses while the remaining $2.7 million came from poker licenses. The company now has 42 active online gaming licensees that operate a total of 137 game sites. Four new licensees and 22 new games sites were launched during the second quarter of 2006.
Playtech's second quarter trading update was issued on July 26, only six days after the company issued a statement in which it reacted to its falling share price in the aftermath of David Carruthers' arrest by clarifying that it does not provide sports betting software and that it does not operate gambling sites.
The trading update also reveals that Playtech has reduced the percentage of player income from the U.S. to 48 percent-- compared to 49 percent in the first quarter of 2006 and 58 percent in the second quarter of 2005. Meanwhile Asian revenues have increased by 17 percent compared to the same period last year while European revenues have increased by 33 percent.
In July Playtech added four new games to its casino portfolio, bringing its total number of games to over 90.
Ryanair Prepares for Gambling as Profits Surge
Low-cost airline Ryanair has reported a record first quarter pre-tax profit of 128.6 million euro (US$165 million), an improvement of 67 percent compared to the same period a year ago. The company has hinted that within the next month it may announce a deal for the use of an in-flight mobile phone gambling service that could become operational by July of 2007. Before that, however, the company will begin offering online gambling through its Internet site, perhaps as early as September 2006.
Despite the bumper success of its first quarter, the company remains vulnerable this winter to high oil prices and increased capacity.
Drummond Brother Add Shares in Gaming Corporation
The two Drummond brothers, Justin and Jason, both of whom are directors in Gaming Corporation (GMC.L), added shares in the company last week. The brothers have a history of always doing the same thing as far as their company is concerned; the only time the two did not act together was when Jason invested £90,000 pounds ($171.5 million) at 3p each in January of 2005. Shares had tripled by February of 2005 and continued to grow, but they recently plunged below the 10p mark for the first time since then.