Playtech issues profit warning

Playtech has said that its full-year results could be 5% below the bottom end of market expectations, due to the impact of certain Asian markets and its contract with Sun Bingo.

In a trading update, Playtech said that it has experienced a “recent slowdown” in certain parts of Asia, due to changing market conditions, and although it expects activity to return to normalised levels soon, it does not anticipate “significant improvement” before the end of the year.

Playtech said it remains committed to its partners in Asia and will continue to support them, while at the same time pushing to increase its exposure in key regulated markets.

Meanwhile, Playtech has also revealed ongoing struggles with the contract it has in place with Sun Bingo, describing the deal as “challenging”.

The company has put this down to lengthier seasonality and the re-launch of the new Sun Bingo site.

Aside from this, daily average revenues in the gaming division accelerated following the interim results posted in late August, while Playtech’s Financials division is performing in line with expectations.

In addition, Playtech said its non-Asian B2B business continues to perform “broadly in line with expectations”, with organic growth being supplemented by acquisitions made in both 2016 and 2017.

Speaking in the trading update, Playtech added: “Playtech will continue its strategy of focusing on both organic and inorganic revenue growth in regulated and to-be-regulated markets.

“The M&A pipeline remains very strong and the company is in active discussions with a range of gaming businesses consistent with executing this strategy and with the expectation that the relative contribution from Asia to the group will consistently reduce over time.”

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