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Playtech on track for full-year target after Asian recovery

| By iGB Editorial Team
Company boosted by Snaitech purchase and stabilisation of Asian performance
EveryMatrix Q1

Playtech has said it remains on track to achieve its full-year earnings targets after it was able to post results “consistent with expectations” in the third quarter.

In a trading update for the period since June 30th, the firm said trading in its B2B gaming division continued in line with the trends reported in its half-year results, with strong revenue growth in non-Asian markets.

Playtech said revenue from Asia has stabilised at an annualised run-rate of around €150m (£131.4m/$169m). This followed a difficult first half which saw the supplier's net profit drop 34%, blamed on a crackdown on gambling syndicates in Malaysia and increased competition in a number of other territories throughout the region.

The firm’s B2C gaming division also carried over positive momentum from the first half into Q3, with the division, comprising a number of assets including Italian operator Snaitech and the UK-facing Sun Bingo, trading in line with expectations.

However, reports in the Financial Times suggest that Playtech's Italian business may suffer should the country's government push ahead with plans to significantly reduce the number of amusement with prizes (AWP) and video lottery terminals (VLTs) permitted. Its B2B Playtech BGT Sports business may also suffer in the UK, where the maximum stake on fixed odd betting terminals will be slashed from £100 to £2 in October of next year.

Elsewhere, Playtech said underlying KPIs for its TradeTech financial division were largely positive during the reporting period, but noted market movements favoured customers particularly in September and October.

As a result of its activity in the quarter, Playtech expects to report EBTIDA of between €320m and €360m for the full year.

Playtech also said its financial position remains strong, with the company completing a €530m bond offering to fund the Snaitech acquistion, and raising around €200m from the sale of its 10% stake in financial trading business Plus500.

The firm also appointed Ian Penrose, former CEO of Sportech, as a non-executive director in Q3.

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