Playtech PLC (LON:PTEC) has provided a trading update for the third quarter of 2015, with the Financials Division delivering a set of solid results.
Interesting also is what was missing from the Playtech filing – there was no real update on the fate of the in-process acquisitions of Plus500 and AvaTrade. Playtech did state that they expect to close on Plus500 by the end of November, and that they are challenging the Central Bank of Ireland’s decision to oppose the AvaTrade acquisition. However that was old news, with no real update or outlook provided.
Playtech has been growing its financials business over the past several months and although as we stated above the proposed acquisitions of CFD broker Plus500 Ltd (LON:PLUS) and AvaTrade have yet to be completed, the acquisition of TradeFX (which includes the Markets.com and TopOption brands) which closed in May this year is already bringing some benefits, as today’s Trading Update shows.
The Financials Division has already shown some strong metrics when Playtech reported its results for the first half of 2015, but the three months to September 30, 2015, mark the first full quarter to include the Financials Division after the completion of the acquisition of TradeFX.
Customer acquisition and market volatility have driven revenues at the Financials Division, with Q3 2015 revenues amounting to EUR 27.5 million ($30.47m), up a massive 158% from the result of EUR 10.6 million in revenues reported for Q2 2015. We should have in mind, however, that the result for Q2 includes only two months – a part of May and June, so the comparison is somewhat tilted in favor of Q3. But still increasing nicely any way you cut it.
Active CFD customers reached 26,400 in the quarter, up 21% against the same period in 2014, with first time depositors (FTDs) for CFDs of 9,700, up 19%.
Latest developments and outlook
- Regulatory approval for the acquisition of Plus500 expected by the end of November.
- Formally challenging the Central Bank of Ireland’s decision regarding the acquisition of Ava Trade.
- In the 19 trading days to 27 October 2015, the Financials division saw both active CFD customers and FTDs for CFDs, up over 20% against the same period in 2014.
- The company is confident in continued momentum and strong growth for the remainder of 2015 and beyond.
Mor Weizer, Chief Executive Officer of Playtech, commented:
“Playtech delivered a strong operational performance in the third quarter with reported growth of 47% and underlying growth of 17%. Three quarters of our growth in Q3 came from regulated markets which now account for over half of all group revenues.
“Our Gaming division continues to enjoy double-digit underlying growth with our strong pipeline of opportunities giving us confidence in maintaining our momentum. Our Financials division had a strong quarter driven by customer acquisition, with a focus on our direct marketing channels, and we hope to complement our growth with the completion of the acquisitions of Plus500 and Ava Trade.
“Given the strength of our business and the momentum that we are enjoying, we have confidence for the remainder of 2015 and beyond.”
The full announcement from Playtech can be viewed by clicking here.