Press Release 25th February 2016

Playtech post strong results for 2015.

Financial highlights

• Total revenues up 38% vs 2014 on a reported basis:
• revenue growth of 26% (excluding acquisitions / adding back the impact of the UK POC tax).
• 16% growth on a constant currency basis (excluding acquisitions / adding back impact of the UK POC tax).
• Strong growth in adjusted EBITDA with similar underlying adjusted EBITDA margin.
• Full year dividend per share up 8%, in-line with growth in adjusted net profit.
• Cash balances at year end of €857.9m.
• active discussions for a number of potential acquisitions in the Gaming division.
• in the absence of suitable acquisitions, consideration will be given to returning cash to shareholders.
• Further strengthening of the Board with appointments of Paul Hewitt and John Jackson.

Operational highlights

Gaming division

• Strong underlying performance with double digit growth excluding acquisitions, impact of POC, white-label and currency effect.
• Regulated revenues growing faster than .com.
• 41% of Gaming revenues from regulated markets (2014: 36%).
• strong growth in the UK driven by Sky, GalaCoral, Ladbrokes, Betfair and white-label customers.
• 10 new licensees signed in 2015 including Sun Bingo, Marca, win2day and Mr Green together with further product penetration in customer base.
• Landmark exclusive agreement signed with DC Comics after the year end.
• Strong pipeline with significant wins expected in 2016.

Financials division

• Pro-forma full year revenue of $100.2m with post-acquisition revenue contribution of $66.5m (€60.0m).
• Total active CFD customers up 30% over 2014, with first time depositors (FTDs) up 25%.
• Adjusted EBITDA since acquisition of $17.8m (€15.9m) with margin of 26% due to lower volatility and improvements to business model to further enhance compliance in a tightening regulatory environment.
• Improvements made to business model to impact 2016 revenue growth and margin.

Current trading and outlook

• Average daily revenue in the Gaming division for the first 53 days of Q1 2016 was up over 12% on Q1 2015 (18% at constant currency) and up over 2% on Q4 2015 (7% at constant currency) mainly due to growth across the business including improved commercial terms and new customers in Asia.
• Markets Limited has seen a strong start to 2016 driven by strong volatility with positive momentum from direct business following improvements to business model.
• Momentum in the business and strength of pipeline provides management with confidence in strong growth in 2016 with stronger growth in the Gaming division offsetting lower growth in the Financials division.

Alan Jackson, Chairman of Playtech, commented:

“Whilst 2015 was an incredibly busy year for Playtech, our operational performance was stronger than ever, delivering reported revenues up 38% and up 26% on an underlying basis.

“The Gaming division continues to lead the industry and drive our growth. Our pipeline of opportunities continues to be very strong and we expect significant wins in 2016, led by our pioneering omni-channel offering and driven by existing and newly regulated markets. Our newly created Financials division is developing well and we have further improved its business model.

“We have many opportunities for further growth, both organically and through M&A, with active discussions on a number of potential acquisitions in the Gaming division. Should suitable acquisitions not be available, consideration will be given to returning cash to shareholders as we look to maintain an efficient capital structure.

“Taken together, we are confident in strong growth in 2016 and beyond.”

Press Release Ends

Whilst no specific mention of live casino has been made with the exception in the main report of the release of Prestige Roulette, we should expect massive improvements with live casino over the next 12 months.

The recruitment of Kevin Kilminster from William Hill is the catalyst of change and I expect there to be lots to talk about this year.

Other noteworthy figures is the increase in revenues through mobile. It represents 21% of 2015 software revenues compared to 16% in 2014.