Gaming division revenues accelerate at Playtech
News on 2 Nov 2017
News on 2 Nov 2017
In a trading update Thursday Playtech plc broadly covered activity in H2-2017 ahead of a briefing for investors scheduled for November 14 at the group’s new Live Casino studio in Riga, Latvia.
The company reports that daily average revenues in the Gaming division accelerated following the interim results in late August, and are currently higher.
However it notes that the Sun Bingo contract remains challenging due to lengthier seasonality and the re-launch of the new Sun Bingo site, and that there has been an impact from recent changing market conditions in certain parts of Asia.
Tradetech Group, Playtech’s Financials division, is performing in line with expectations, with continued growth in underlying KPIs, whilst TradeTech Alpha is already making a positive contribution since the acquisition of ACM assets on 1 October 2017.
Playtech reports a recent slowdown in certain parts of Asia due to changing market conditions. Whilst it had been expected that activity would return to normalised levels in a relatively short timeframe, there is no longer an expectation for any significant improvement in 2017, the company advises, adding that it will continue to support its partners in Asia.
The company’s non-Asian B2B business continues to perform broadly in line with expectations, with organic growth supplemented by acquisitions made in 2016 and 2017.
With the impact of certain Asian markets and Sun Bingo underperformance taken into account, Management now believe the Group’s performance for the full year will be around 5 percent below the bottom end of market expectations.
The update concludes:
“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.”
