Playtech Bottom Line Helped by Currency Conversion
April 6, 2009 (CAP Newswire) – According to PokerNews.com, Playtech’s latest financial results show "stellar earnings" over the past year, with a gigantic 70 percent revenue growth, as well as a 79 percent jump in adjusted new profits.
Interestingly, however, the brief report also claims the company’s switch to the euro in its financial reporting makes it a bit harder to judge just what kind of bottom line the company now enjoys.
“While Playtech was impacted by the declining euro, like 888 Holdings and other firms, Playtech did something unusual to counter the negative effects,” writes Amy Caslitri in the article. “For this report, and apparently going forward, Playtech stopped reporting its earnings in U.S. dollars and is now reporting in euros. To complicate matters further, all past-year comparisons have been converted to euros, using a euro-to-dollar ratio of 1.5777 — almost the highest valuation of the euro in ten years. In effect, Playtech has deflated past results and inflated current results."
Even aside from the currency confusion, however, Playtech did show growth in 2008, the article emphasizes. This growth was helped by the company’s acquisition of 15 new licensees, as well as the purchase of a 29 percent stake in William Hill. Even better, the company reports earnings of around 8 percent so far in 2009’s first 11 weeks.