Online Gambling Software Firm Playtech Delays Interim Dividend

Playtech, one of the world's leading online gambling software developers, has announced that it has delayed a decision to pay out interim dividends until its final 2011 results are in, for the reason that it is reportedly in the midst of negotiations regarding a potential partnership deal and buyout.

A recent statement issued by Playtech said: 'Due to exceptional strategic M&A and partnership opportunities which are currently under discussion, in order to retain maximum flexibility, it (the Playtech board) will defer a decision over the interim dividend.'

As a result of the announcement, many UK brokerages reduced their price target on the London Stock Exchange-listed company, including Collins Stewart. The London-based brokerage dropped Playtech's price target from 505 pence to 440 pence as a result of the delay in interim dividends.

Playtech defers interim dividend decision

A Collins Stewart spokesperson confirmed, 'Playtech has chosen to defer a decision on the interim dividend, to conserve cash given acquisition/investment opportunities emerging in regulating markets, particularly given the weak financial markets backdrop.'

Following Playtech's interim dividends announcement, Playtech's share price dropped by 4.5 percent on the London Stock Exchange. This will mean that not only will the company's shareholders closely follow its progress in the coming months, but so will the key players in the global online gambling industry.

Playtech, which reported first half adjusted earnings before interest, tax and depreciation of 56.1 million euros compared with 54.2 million euros last year, is confident it will exceed all financial expectations in 2012. The company's total revenues on an ongoing basis increased by 18 percent to 76.3 million euros.

Playtech tackles Italian online gambling market

Teddy Sagi, Playtech founder and 40 percent shareholder in the firm, confirmed that the average software revenues for the first 54 days of the second half of 2011 rose to over 23 percent compared to last year. He attributed this to the introduction of online casino and poker cash table games in Italy, which recently regulated its online gambling market.

Playtech provides online gambling software to many of the world's leading online casinos, poker rooms, bingo casinos, mobile gaming operators, sportsbooks, and also offers Live and TV gaming, Videobet and other services. Playtech-powered online casinos include Casino Las Vegas, Omni Casino, Europa Casino, Winner Casino and Casino Tropez.