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Online gambling provider intends to pursue an aggressive acquisition strategy
Playtech spokesmen were in a bullish mood in an interview with the Financial Times this week, revealing that the online gambling software company plans an �aggressive� acquisition strategy after enjoying strong growth towards the end of last year.
The spokesman commented that the firm's European Championship of Online Poker held in December, its largest event, awarded $2.5 million (GBP 1.26 million) in guaranteed prizes and helped monthly sales reach a �record level�.
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Playtech is in talks to sign licensees in the Spanish and Italian markets for the first time, the spokesman revealed, and a service signed with one of the largest [and still unidentified] Asia-facing online gaming operators will be launched by the end of the first quarter. It is understood a further licensee agreement with a separate Asian operator will be announced after approval from regulators.
Unusually for a software company, Playtech takes a percentage cut of licensee revenue. Yet analysts point out it faces price pressure from rivals, which include Microgaming, a privately owned counterpart of a similar size, and smaller developers such as CryptoLogic, reports the FT.
Despite this, the company maintained it was �highly confident� of the new year.
Numis analyst Richard Carter has maintained his Playtech forecast for 2008 unchanged but said he may increase it between 10 and 15 percent if �current trading momentum is maintained�. He described Playtech as a �best in class operator� but noted its dependence on just 10 licensees.
The company said it was confident that it would meet analysts� estimates for 2007. Pre-tax profits are expected to be $68.8 million on sales of $102.8 million.
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