Share surge as Playtech returns £128m to investors
PLAYTECH has revealed it will trim its acquisition war-chest by returning €150m (£128m) to investors, sending shares in the gambling software company to record levels despite the business revealing that profits had been hit by sterling’s plunge.
Investors pushed shares in the FTSE 250 company up 3.2pc to an all-time high of 928p yesterday after Playtech, a key supplier to betting companies, said it would pay a special dividend of 46 euro cents a share – 40p at current exchange rates – to shareholders on December 6.
It comes on top of an interim payout that has been lifted 15pc to 11 cents but still leaves Playtech, which was found- ed by the Israeli billionaire Teddy Sagi, with a substantial cash-pile of about €750m that it hopes to spend buying up other businesses.
“We’re still in discussions with certain potential companies that we would like to acquire, both in the gaming division as well as the financial [trading] division,” said Mor Weizer, Playtech’s chief executive.
The acquisitive firm unveiled the dividends at its first-half results, which showed pre-tax profits slumped 40.2pc to €51.3m despite an 18.1pc rise in revenues to €337.7m. Its profits were hit by sterling’s plunge following the Brexit vote in June.
Adjusted earnings before interest, taxes, depreciation and amortisation – Playtech’s preferred measure of profitability – climbed 27pc €143.8m and were up 40pc on a constant currency basis. The business has spent €162m so far this year buying Swedish games developer Quickspin and betting software Best Gaming Technology, but a blockbuster deal has so far eluded it. Two deals to grow its financial trading software business collapsed last year after regulators raised concerns.