The gambling software firm has agreed to buy the poker network for an initial consideration of $75m with a maximum consideration of $139m should Tribeca generate revenues exceeding $29m over the coming year.
Following Tribeca\’s decision to block certain territories, including the US, the entire Tribeca network will migrate its operators and players to the Playtech\’s software platform and then it will cease operations.
In the 12 months to 31 December 2005, Tribeca Tables Europe generated a turnover of $6.2m and gross profits of $5.3m. While in the last quarter the poker network generated a turnover of $3.9m and gross profits of $3.4m.
Playtech said the deal was in line with its continued strategy to diversify its portfolio and geographical reach. The company expects higher revenues to be generated by the increased player liquidity as well as from the introduction of Playtech\’s casino games to the migrated licensees.
Playtech Chief Executive Avigur Zmora commented: “This is a landmark deal for Playtech, which in one move, transforms the Company into the world\’s leading poker network that excludes US players. Tribeca is an outstanding fit for us and the company\’s licensees are operating, for the most part, in different geographical locations to Playtech\’s current poker licensees.”
“We look forward to welcoming Tribeca\’s licensees and offering them the best combination of poker knowledge and world leading technology. Both Tribeca and Playtech are committed to a smooth transitional period to ensure that migrating licensees can continue to offer the most attractive poker environment for their players.”
In separate news, Playtech announced its trading update for the third quarter of 2006, which saw total revenues increase by 103% compared to the same period last year and 4% on the previous quarter to $26.5m. This breaks down as follows: casino revenues increased by 95% compared to the same period last year and 2% on the previous quarter to $22.6m; poker revenues increased by 274% compared to the same period last year and 26% on the previous quarter to $3.4m; income from non-US players increased to 53% from 49% for the same period last year and from 52% in the previous quarter.
“I am very pleased with the way the Company had handled the implications of the passing of the Unlawful Internet Gambling Enforcement Act 2006. There is no doubt that this legislation will affect Playtech\’s revenue generation but the actions taken over previous years to create a balanced business portfolio and the acceleration of non-US business will ensure the Company\’s continued growth prospects and success as we can already see on a non US pro forma basis. The Board and I look forward to the next quarter and beyond with confidence,” commented Zmora.
Elsewhere, Scandinavian-focused poker site Poker Arena has launched on the Microgaming network, while Ongame has announced the addition of six new operators to its gaming network, including Canbet, Interwetten, Poker.gr, Red Kings and Prime Poker, Tower Gaming and Winamax.
Calculators
