Playtech halts Asia tumble

Gaming technology giant Playtech is set to finish the year positively according to its recent trading statement for the period since June 30, 2018. This will be of particular relief to Playtech in Asia, in which market the first half of the year saw a constant currency net-profit drop of nearly 40 per cent. Playtech’s Asia […]

Playtech halts Asia tumble

This will be of particular relief to Playtech in Asia, in which market the first half of the year saw a constant currency net-profit drop of nearly 40 per cent.

Playtech’s Asia business posted revenues of approximately €150m in the period, a stabilisation from the drop earlier this year, which saw revenue €70m lower than expected during the second half of 2018.

The company is expected to achieve between €320m to €360m in adjusted earnings (EBITDA) for 2018, judging from the half-year results announcement in August.

Both the B2B and B2C divisions mirror the group’s performance as revenue growth is moving at a good pace outside of Asia after completing the takeover of Italian operator Snaitech as the business continue to keep in line with the group’s trade expectations.

Playtech is keen to highlight its efforts away from Asia as revenue continues to climb (slowly) year on year and the group’s KPIs, in the second half of the year, have begun to take momentum.

Commenting on the H1 results in August, AlanJackson, chairman at Playtech, said in a statement: “This continued progress is resulting in higher quality earnings for Playtech with group revenue now 69 per cent regulated. Following headwinds in Asia and a full-year contribution from the landmark Snaitech acquisition, regulated revenue at current run rate is expected to be circa 80 per cent in 2018.

“This progress is marked against the disappointing market conditions in Asia. However, it should be noted the headwinds in the Asian market are not reflective of the core strength of the Playtech model as the regulated segment continues to report organic growth and encouraging momentum.”

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