Presentation to Analysts. Interim results for the six months ended 30 June 2006

Transcription

1 Presentation to Analysts Interim results for the six months ended 30 June th August

2 Agenda Roger Withers - Introduction Avigur Zmora - Highlights Shuki Barak - Financial Review Avigur Zmora - Operating Review & Outlook Roger Withers - Summary Questions & Answers 2

3 Highlights 3

4 Financial Highlights Total Revenues up 139% to $46.2 M (2005: $19.3 M) Casino Revenues up 129% to $40.4 M (2005: $17.6 M) Poker Revenues up 851% to $4.8 M (2005: $0.5 M) Operating Profit* up 166% to $36.5 M (2005: $13.7 M) Net Profit* up 172% to $37.3 M (2005: $13.7 M) Net Profit Margin* up to 81% (2005: 71%) Basic EPS* up 157% to 18 (2005: 7 ) Proposed interim dividend of 8.7 per share *Excluding founders cash contribution to employees and options charge in the amount of $6.8 M 4

5 Operational Highlights Greater Geographical Diversification* USA has decreased from 62% in 2005 to 49% in 2006 Asia has increased to 20% in 2006 from 11% in 2005 Europe has increased to 25% in 2006 from 20% in 2005 Continued growth of licensee portfolio 42 licensees operating 137 game sites (as at 30 June 2006) 44 licensees operating 144 game sites to date New products and platforms currently being introduced and in the pipeline Mobile and Videobet completed during H1 Mahjong and other Asian games are being developed Substantial recruitment and training program established Playtech Bulgaria Playtech Academy (Estonia) * Player revenue generated 5

6 Financial Review 6

7 Profit & Loss Six months ended June $ 000 $ 000 Change % Revenues 46,176 19, Operating Expenses* 3,174 2, Sales & Marketing* 3,692 2, Development Costs* (18) General & Administrative* 2, Operating Profit* 36,464 13, Financing Income 1, ,660 Income before Taxation* 37,549 13, Tax Expenses ,017 Net Income* 37,286 13, Basic EPS ( )* Net Income 30,490 13, *Excluding founders cash contribution to employees and options charge in the amount of $6.8 M 7

8 Revenue and US Exposure 65% 60% 55% 50% 45% Asian operators focus on World Cup H1-05 H2-05 H1-06 Million $ Total Revenues Percentage of income from US players 8

9 Revenues by Product - H Casino 87% Poker 10% Others 1% Bingo 2% 9

10 Revenue by Product - Growth Million $ H1-05 H2-05 H1-06 Casino Poker Others 10

11 Geographic Diversification* - H USA 49% Europe 25% Asia 20% Rest of the World 2% *Player revenue generated Canada 4% 11

12 Geographic Diversification* (cont.) 70% 60% 50% 40% 30% 20% 10% 0% * Player revenue generated USA Europe Asia H H

13 *Excluding founders cash contribution to employees and options charge in the amount of $6.8 M Cost Breakdown* Number of employees up by 40% to 277 ( ), Revenue up by 139% In 2006, total development costs were $1.4 M, out of which $1.0 M has been capitalized Million $ Operating Development H1-05 H1-06 Sales & Marketing General & Administrative Includes provision of $1 M for performance bonus 13

14 Founders Cash Contribution to Employees The founders of the Company gifted $6.6 M to a staff trust fund for distribution to the Company s employees This amount does not impact the Company s cash flow Accounting implementation: The Company accounted for this contribution as a capital contribution in accordance with generally accepted accounting principles The Company recorded a one time charge to the P&L 14

15 Balance Sheet June 2006 $ 000 December 2005 $ 000 Current Assets Cash and Cash Equivalents 89,857 17,995 Other Current Assets 6,452 4,526 Total Current Assets 96,039 22,521 Fixed Assets 1, Intangible and Non-Current Assets 2,886 1,448 Total Assets 100,385 24,903 Current Liabilities 8,164 5,102 Non-Current Liabilities Shareholders' Equity Share Capital and Funds 55, Accumulated Profit 36,308 19,587 Total Liabilities and Shareholders Equity 100,385 24,903 15

16 Cash Flow June 2006 $ 000 June 2005 $ 000 Net Income 30,490 13,690 Depreciation and Amortization Founders Cash Contribution to Employees 6,566 - Employees Stock Options Expenses Net change in Assets and Liability 1,342 (436) Other Adjustments 11 (2) Net Cash Provided by Operating Activities 39,142 13,434 Net cash Used in Investing Activities (2,537) (335) Net cash Provided by (Used in) Financing Activities 34,987 (10,171) Increase in Cash and Cash Equivalents 71,592 2,928 Cash and Cash Equivalents at Beginning of Period 17,995 11,298 Cash and Cash Equivalents at End of Period 89,587 14,226 16

17 Cash from Operations Compared to Operating Profit* Million $ $37 M $39 M $14 M $13 M H1-05 H1-06 Operating Profit Cash from Operations *Excluding founders cash contribution to employees and options charge in the amount of $6.8 M 17

18 Operating Review & Outlook 18

19 Cross Selling Opportunities 19

20 Product Pipeline Pachinko Mahjong Asian card games New progressive concepts On-going production of new games Exclusive and branded games 20

21 Licensees Expected to launch 6 new licensees this year, 3 targeting Asia, 1 targeting South America, 1 targeting North America and 1 targeting Europe Cross selling - 5 licensees launched new products in the last 12 months Profile of potential licensee $150k in royalties per month within 12 months from launch 21

22 Building for the Future Current number of employees 277 On going recruitment 25 Playtech Bulgaria 20 Playtech Academy 25 Expected number of employees by the end of

23 Summary Strong H1 results Continued reduction of US exposure Diversity of licensees base to minimize risks New products being introduced New licensees being added Current trading 23

24 Questions & Answers 24