Isle of Man-based gaming supplier Playtech has said it is working to protect its cash flow as the COVID-19 (coronavirus) pandemic worsens.

Limited impact so far, but bracing for significant disruption

Though the company says it has only seen “limited impact” on its B2B business so far, and that its poker and bingo businesses have actually seen activity increase as more people are stuck in lockdown.

However, it has warned that it does expect the live casino vertical to be impacted going forward, due to employees being unable to work from studios.

It also warned that it is bracing for its B2B sport business, which is focused on the UK and Greece, to generate a loss of €4m in adjusted EBITDA.

Major issues in Italy but Asia remains steady

In Italy, Snaitech’s retail betting shops have been forced to close, impacting Playtech’s B2C operations. Though Snaitech is still generating some revenue from its online business, it has also been severely affected by the widespread postponement and cancellation of major sporting events.

Playtech says it expects Snaitech to generate a loss of €3m in adjusted EBITDA per month as the crisis continues.

In Asia, the company expects revenue to remain steady from February, at around €7m per month.

AYO.NEWS says:

Over the last week we’ve seen a slew of gambling operators and supplies issue warnings about the effect of the COVID-19 (coronavirus) pandemic on business. Yesterday we reported that Denmark-based sports betting affiliate firm Better Collective has said it is well positioned to weather the storm, and gaming supplier Aspire Global said it is preparing to ride out the storm.

While earlier in the week, William Hill, GVC Holdings, The Stars Group and Flutter Entertainment issued warnings about the effect of the crisis, particularly the cancellation of sporting events, on their businesses.

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