BUSINESS

‘Disappointing’ Asian markets cause fall in profits for Playtech

TAGs: Alan Jackson, Playtech, Snaitech

Online gaming software supplier Playtech reported revenue of €436.5 million ($506.3 million) for the first half of 2018, up 4% from the same period last year.

'Disappointing' Asian markets cause fall in profits for PlaytechIn a filing, the London-listed company noted that its total revenue from January to June, excluding Asia, went up 35%, compared to last year’s first half. Just last June, the company’s stock plummeted in relation to its gray- and black-market operations in Asia, due to crackdowns on illegal gambling.

Playtech Chairman Alan Jackson said in a statement, “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.”

Jackson is reportedly to be replaced by Ian Penrose, who will join as a non-executive director to the company’s board.

The company’s adjusted earnings before interest, depreciation and amortization (EBITDA) for the period was €145 million ($168.2 million), 15% lower than the same period last year. Reported net profit was up, to €112.4 million ($130.4 million), 25% higher than the €89.6 million ($103.9 million) posted in the first half of 2017.

Earlier this month, Playtech completed its takeover of Italian gaming operator Snaitech. Of its acquisition, Playtech, in its filing, stated, “Snaitech saw a strong performance at the start of H2 2018 driven by the closing weeks of the World Cup following which the business has continued to trade in line with our expectations,” adding that B2C (business-to-consumer) gaming apart from Snaitech was “performing in line with expectations with the Sun Bingo contract continuing to see revenue momentum.” Sun Bingo reported a 28% growth in revenue for the period.

The company also noted “continued progress on balance sheet efficiency” after the sale of their holdings in Landbrokes-Coral and GVC this year.

Playtech has recently been expanding its operations around the world, partially in order to reduce reliance on its Asian market operations. Just last month, subsidiary Playtech BGT Sports recently inked an agreement with Corporación Caliente for the installation of self-service betting terminals (SSBTs) throughout Mexico. It has also partnered with Portuguese gaming operator Sociedade de Apostas Sociais to launch Placard.pt for online sports betting.

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