iPoker the only negative number on Playtech’s Q3 earnings report

Online gambling software supplier Playtech saw poker revenue fall by one-quarter in Q3, spoiling an otherwise perfectly upward earnings report.

Playtech reported overall revenue up 47% to €170.9m in the three months ending Sept. 30, although a good chunk of the gain was attributable to its new financial services division, which added €27.5m to the total. Without the new add-ons, Playtech’s gaming operations were up a more modest 23% to €143.4m.

Playtech’s gaming division was led by its casino vertical, which gained 21% year-on-year to €75.4m, while services revenue improved 18% to €40.1m. The struggling iPoker division generated revenue of €2.5m, down 25% year-on-year and off 13% from Q2 2015. All other gaming segments were firmly in positive territory, led by sports betting (€8.9m, +25%), land-based gaming (€8.3m, +134%), bingo (€5.3m, +15%) and ‘other’ (€3m, +88%).

Regulated markets accounted for 73% of the gaming division’s growth in the third quarter, pushing the regulated market share of gaming revenue up five points to 40%. Mobile also flexed its muscle, rising six points to 23% of software revenue.