Online gaming co Playtech buys sports betting firm

Playtech finds that sports betting "has important growth potential for the company".

Online gaming software developer Playtech Cyprus Ltd. (AIM:PTEC) disclosed in its financial report for 2008, published on Thursday, that it has acquired the assets of sports betting company Player2Players Ltd.

Player2Players is a subsidiary of Cypriot-registered RIG Ltd. Many online gaming companies are registered in Cyprus. Player2Players, founded five years ago, has an R&D center in Tel Aviv. The company's senior software engineers are Yuval Mesika and Hagar Turgeman, both of whom served in the IDF Center of Computing and Technology Information (Mamram).

The acquisition adds sports betting to Playtech's casino and poker products. Playtech will merge Player2Players' programs into its own platform. The company noted, "Sports betting has important growth potential for the company."

Playtech posted €111.5 million revenue in 2008, 70% more than the €65.7 million revenue in 2007. Adjusted net profit rose 79% to €78.6 million in 2008 from €43.9 million in 2007. The company said that it switched to reporting in euros because the bulk of its business is now conducted in that currency.

Playtech's share rose 4.2% on Friday to ₤4.25, giving a market cap of ₤1.01 billion. The share rose 13% last week, and is up 34% since the beginning of the year. Teddy Sagi owns 41.2% of the company.

Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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