Playtech, the world’s largest supplier of online gaming and sports betting software, has issued a warning to investors.
“Highly challenging” September and October
Though regulated B2B gaming revenue for the first 4 months of H2 2019 was up 12% year-on-year, in a trading update, Isle of Man-based Playtech has warned investors that sales conditions in its TradeTech division have been “highly challenging during September and October.” The company says it now estimates the division’s results for 2019 to be “well below management’s expectations.”
40 brands launched, Snaitech performing well
Playtech confirmed that, by the close of the year, the company expects to have launched 40 brands, and said that Snaitech has continued to outperform expectations, driven by outperformance online – gaining market share in the Italian market despite the advertising ban that came into force in July 2019. Snaitech also set a record for monthly first-time depositors in September.
LatAm and Asia
The company also announced it has signed a long-term structured agreement with Colombian gaming and betting brand Wplay, under which Playtech will be the brand’s strategic technology partner and provide operational marketing services.
Moving to Asia, Playtech said it expects to generate a revenue of €115m from the region for the year.
Other business
Playtech also said it is reviewing options for its Casual and Social Gaming business, including a possible sale of all or part of the unit.
The company’s €297m Convertible Bond issue matured on 19th November, and was repaid from the proceeds of the €350m 4% senior notes issued in March, while its revolving credit facility has been extended to €317m.
The €25m share buyback program, launched in August, has been successfully completed, with €121m being returned to shareholders during 2019 through dividends and buybacks.
AYO.NEWS says:
Its been a bit of a mixed year for Playtech by the looks of things, as certain areas become much more challenging, but the company pivots to focus on opportunities in emerging markets like Latin America and Asia. Its also interesting that Snaitech is performing so well in the Italian market, despite the inability of the Playtech to market the brand.
AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.
