Playtech shares dive on back of profit warning

Playtech‘s warning  this (Thursday) morning that its FY figures may take a 5 percent hit from difficulties in the Asian market and technical hassles on the Sun Bingo contract with News UK (see previous report) sent the share price southwards by around 20 percent Thursday morning according to business media reports.

The Guardian additionally noted that although Playtech also provides Fixed Odds Betting Terminal software it did not comment on the government review this week which heralded cuts in the maximum stakes permitted on the machines, and the numbers allowed per betting shop.

The Guardian speculated that Playtech’s non-specific reference to a slowdown in the Asian market may refer to recently boosted enforcement and restrictions in Malaysia, reportedly one of the gambling group’s important markets.

Referring to the slowdown “in certain” Asian countries, Playtech had commented that it was more prolonged than anticipated and likely would result in a decline in Asian revenue in the future.

The plunge in share price knocked around GBP 650 million off the company’s stock market value, according to some business sources, and was the biggest decline on the FTSE 250 today.

One time major shareholder Teddy Sagi sold off around GBP 780 million of his shares in the company this year in order to fund his London property development aspirations, some reports noted.

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