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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
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Software & services

Playtech first-half profits rise but third quarter revenue dips

Playtech's average daily revenue early in the third quarter fell 2% versus the second quarter

Gaming and financial trading software firm Playtech (LON:PTEC) posted higher first-half revenue and profit but said third quarter gaming revenue had dipped.

Playtech, which is buying financial trading group Plus500 (LON:PLUS), reported a 16% rise in adjusted pre-tax earnings before interest, depreciation and amortisation to €112.9mln.

Revenue lifted 33% to €286mln and the company increased the interim dividend per share by 8% to €0.96.

But Playtech said average daily revenue in the first 55 days of the third quarter had fallen 2% against the second quarter. It was, however, 15% up against the same three months a year ago.

Playtech said the second quarter was usually strong and the third quarter was traditionally the slowest of the year.

The group said its newly created financial trading division Markets Ltd, formed through the acquisition of TradeFX in May, had a good start to the third quarter.

Chairman Alan Jackson said: "The progress we have made gives me great confidence that the sustained momentum in our business will result in further growth in 2015 and beyond."

Playtech expects to complete its acquisition of Plus500 by the end of next month, subject to conditions being satisfied.

Plus500 reported a 20% rise in first-half revenues to US$127mln, but pre-tax earnings fell 23% to US$55.5mln.

It said it had "become the subject of increased scrutiny from regulators in the jurisdictions in which it is licensed and has received various requests for information."

Chief executive Gal Haber said the group had faced much regulatory scrutiny but had improved its compliance processes in line with regulatory advice.

It said, however, that the third quarter had started strongly and the board now expected revenues to top 2014 and previous market expectations.

Shares in Playtech fell 9p to 882p. Plus500's stock rose 3.25p to 383.25p.

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