Playtech's 2006 fiscal year

Playtech is happy to announce the financial results for the year ended 31 December 2006. Considering the difficulties faced by the Group, Playtech has recorded a really strong performance. This was in spite of the outcome from the final quarter of the year, which was seriously affected by the absolute and instantaneous removal from the United States following the passing of the US Unlawful Internet Gambling Enforcement Act 2006.

In 2006, the total revenues were $90.1 million which signify a boost of 89% on the $47.6 million attained in 2005. Casino profits for the year totaled $77.2 million, growing with 81% from $42.7 million in 2005. Poker income for the year totaled $10.9 million, growing with 309% from the $2.7 million attained 2005.

On a document basis, which eliminates contributions from the US, the company profits in 2006 totaled $55.6 million, representing an increase of 143% on the $22.8 million in 2005. On the same basis, casino profits for the year were approximately $47.3 million, representing an increase of 131% from the $20.5 million in 2005. Poker income for the year summed $7.4 million, a boost of 386% from the $1.5 million in 2005.

The final quarter of 2006, which is usually a successful quarter, was financially affected by the absolute and instantaneous withdrawal from the United States market. Total profits were $17.4 million which represented a growth of 13% on the $15.3 million in the final quarter of 2005. Casino revenues for Q4 2006 summed $14.3 million, a growth of 5% from $13.5 million in Q4 2005. Poker profits in 2006 were approximately $2.7 million, representing an increase of 116% from the $1.2 million in Q4 2005.

If we exclude the contributions from the US gamblers, the income for Q4 2006 totaled $16.3 million, representing a growth of 110% on the $7.8 million in Q4 2005. On the same basis, the casino profits for Q4 2006 totaled $13.4 million, an increase of 98% from the $6.8 million in Q4 2005. Ultimately the poker revenues for Q4 2006 totaled $2.6 million, representing an increase of 239% from the $0.8 million in Q4 2005.

The net profit after tax for 2006 fiscal year was $60.4 million, representing a boost of 69% comparing to the 2005 net profits. Adjusted net profit after tax, for 2006 was $67.7 million, meaning an increase of 90% over 2005. The adjusted EPS for 2006, based on weighted average shares outstanding of 210,168,682, is 32 cents per share balanced to the previous year which was 18 cents per share. Entirely diluted EPS for 2006 was 31 cents per share matched up to 18 cents per share in 2005.

The Group's working income edge was influenced by the provision of a one-time cash payment from the founders of the Company to Playtech's staff in the first half of 2006, totaling $6.6 million. The provision for this was accounted for in agreement with commonly accepted accounting philosophy and didn't have any financial collision on the Company. Also, the operating profit was modified by the decline in revenue contribution from their licensees' US gamblers in the Q4 of 2006. Eliminating financial contribution and worker stock opportunity expenses, the operating income border diminish from 75% in 2005 to 72% in 2006.

Avigur Zmora, Chief Executive of Playtech, said that they look ahead into 2007 with immense enthusiasm, anticipating that it will be a year of additional development. Geographical expansion will be completed and sustained by the growth and perfection of their product portfolio, creating an increase in the number of income flows accessible to the Group. Their ongoing dedication to their workers, who are the motivating force behind Playtech's success, will help enlarge the Group's force and to further found its position as the world's leading provider of software to the global gaming industry.