Playtech Reports 44% Increase in Financial Division Revenues H1 2017

The gaming and financial technology giant has recently rebranded its financials division to TradeTech.

Playtech has reported a substantial increase in its revenues during the first half of 2017 – €421.6 million, which is higher by 25 percent when compared to the same period a year ago. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) total €170.9 million, which is an increase of 19 percent when compared to H1.

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The newly consolidated brand TradeTech, which represents the company’s financials division, reported an even sharper increase in revenues, by 44 percent to €45.1 million. Following yesterday’s announcement that Playtech has acquired significant assets of Alpha, TradeTech consists of CFH and TradeTech Alpha on the B2B side and and the newly established MarketsPro unit which will focus on high-net worth individuals.

The EBITDA metrics of the financials division increased materially in the first half of this year. Playtech reports that the metric rose 173 percent to €16.1 million.

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Commenting on the company’s results, the Chairman of Playtech, Alan Jackson, said: “Momentum in the Financials Division continued with improvements across all KPIs. The announced acquisition of assets from Alpha brings an important new B2B revenue stream.”

“The creation of TradeTech Group as our operating and corporate brand for the business is an important milestone. It better reflects the broadening of the division’s offering towards a full turnkey B2B financial trading solution,” Jackson elaborated. Key Metrics continued performing strongly during the first half of the year. The broker unit marked a massive increase in first time depositors to 10,500, which is a 94 percent spike when compared to H1 2016.

The number of active clients also increased by 24 percent, to about 19,400. The metrics were driven by the improved cost of acquisition metrics, which resulted in higher profitability for the long-running retail financial unit of TradeTech.

The company posted the increase despite the changes in regulatory requirements introduced by the Cyprus Securities and Exchange Commission (CySEC). The regulator reduced the default leverage for new clients to 1:50, which was expected to impact revenues and trading volumes.

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