Playtech confident of hitting 2018 targets as Asian revenue stabilises

Playtech confident of hitting 2018 targets as Asian revenue stabilises

Monday, November 12, 2018 Posted by News Team
Finance
Supplier says performance from June 30th is in-line with expectations

Betting and gaming solutions giant Playtech said today that it expects to meet its full-year earnings targets after revenue from Asia stabilised in the period since June 30th.

The company said that it expected adjusted earnings before interest, tax, depreciation and amortisation to come in between €320m and €360m for 2018. This had been aided by a period in which Playtech’s overall performance had been consistent with expectations, it said, as well as signs of recovery in Asia.

In July this year Playtech was forced to issue a profit warning as a result of an “increasingly competitive” Asian market, which it said would see B2B revenue from the region decline by around €70m. Revenue stabilised during the reporting period, however, with Playtech expecting to generate around €150m from the region.

The supplier said excluding Asia, the B2B gaming division has performed in-line with the trends seen in the first half of the year, which showed strong growth in regulated markets.

Playtech’s customer-facing division, comprising the Snaitech and Sun Bingo brands, saw positive momentum from H1 continue into the second half. The financial trading division TradeTech was also described as performing well, though Playtech noted that market movements in September and October favoured customers.

The reporting period also saw Playtech strengthen its financial position, through the sale of its 10% stake in online trading site Plus500, which raised around €200m, and a €530m bond offering.

The net proceeds of the bond offering, alongside existing cash reserves, has been used to repay all money owed under the bridge facility used to fund the Snaitech acquisition. The money has also been used to fund the redemption of high-yield bonds issued by the acquired business, and to pay off other transaction-related costs and expenses.

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