StockMarketWire.com - Playtech's revenue increased by 18% on a constant currency basis to €807.1m in 2017, driven by underlying growth and acquisition made in 2016 and 2017.

Excluding acquisitions, revenue grew by 5% at constant currency.

Adjusted EBITDA increased by 7% on a reported basis and 11% at constant currency to €322.1m, while adjusted diluted EPS was up 14% on a reported basis and 8% at constant currency.

The total dividend per share has risen 10% to 36c.

In the Gaming division, revenue grew by 17% at constant currency despite significant headwinds such as the expected loss of Marvel, certain Mobenga contracts and the contract with Poker Stars for Poker Strategy.

The Sun Bingo contract generated a significant adjusted EBITDA loss due to the levels of minimum guarantees payable to News UK. Playtech is in discussions with News UK following an analysis of the issues encountered with the contract.

In the Financials division, revenue grew by 29% to €84.9m and adjusted EBITDA by 73% to €27.0m.

The group EBITDA margin fell from 43% in 2016 to 40% in 2017, principally due to a higher percentage contribution from lower margin parts of the business including white-label, specifically from the full year contribution from Sun Bingo, the Financials division and from Casual. The adjusted EBITDA margin in B2B Gaming remained broadly flat for the year at 49%.

Average daily revenue in the B2B Gaming division for the first 51 days of Q1 2018, was down 11% on Q1 2017 (down 8% excluding acquisitions and at constant currency) against strong comparatives in Asia in H1 2017.

Excluding Asia, average daily revenue in the B2B Gaming division for the first 51 days of Q1 2018 was up 3% (4% excluding acquisitions and at constant currency).

Alan Jackson, chairman of Playtech, said: "Playtech's strategy to improve the quality of earnings for the group, organically and through M&A, was evident in the increase in regulated revenue to 54%. The health of the core business coupled with the strength of the balance sheet means Playtech is strategically well placed to execute on M&A that will continue to drive this growth and further diversify Playtech's revenue base."




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