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Gambling software group Playtech looks set to continue its acquisition spree, saying it was looking for more deals this year on the back of strong revenue growth.
The company, which was founded by Israeli billionaire Teddy Sagi, said it “continues to focus on [mergers and acquisitions] to augment organic growth” after spending €240m on a series of deals in 2016. Further acquisitions may be funded by its cash pile of €545 million.
Reporting full year results for the 12 months ending December 31, revenues grew 20 per cent on a constant currency basis to €708.6m. The group’s adjusted earnings before interest, taxes, depreciation and amortisation were up 32 per cent on a constant currency basis to €302.2m.
The gambling software group provides technology to run the online sites and machines of bookmakers. Growth has been fuelled by strong performances at its casino and sports betting divisions.
Playtech provided an optimistic note on its future trading outlook after signing new contracts with groups such as Pokerstars last year, and contract renewals with existing customers such as Paddy Power Betfair and William Hill.
Alan Jackson, Playtech chairman, said “management remains confident of a strong performance in 2017 and beyond”.
The company has been caught up in the wave of consolidation sweeping through the gambling industry, driven by the need to grow scale in the face of greater online competition and new regulatory burdens.
This month, it acquired Australian bingo software group Eyecon for £50m and bought rival operator Best Gaming Technology (BGT) for €138m last year. But there have been misses; a proposed £460m deal for trading platform Plus500 collapsed in 2015.
The company has also been returning cash to investors, saying its full year dividend would increase by 15 per cent. In August, the company provided the shareholders with a €150m special dividend.