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Playtech Believes It Will Meet Its Annual Goals
- November 22, 2018 By Riley Wilson -
The Isle of Man-headquartered gambling software development company Playtech said earlier this month that it should meet its full-year goals in term of revenue.
The main reason behind this optimistic statement is the fact that revenue from markets in Asia stabilised in the second half of the year.
Estimates Are Positive
If all goes as planned, Playtech expects that its adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) will be somewhere between €320 million and €360 million at the end of the year. Such estimates are boosted by a period of an overall improvement in the company’s performance, as well as improved results in Asian.
Back in July, Playtech issued a profit warning, which simply represented a result of an increased competitiveness in Asia. The warning stated the region’s B2B revenue would go down by approximately €70 million.
However, revenue soon stabilised, and since the situation has been showing signs of improvement, Playtech expects to record around €150 million from Asia alone. According to Playtech, the B2B gaming division has recorded solid results in the first half of the year in all markets except Asia, although the Asian figures didn’t have a significant effect on the overall performance.
Divisions Performed Well
The company’s customer-facing division, which consists of the Snaitech, Italy’s biggest sports betting firm, and Sun Bingo, online bingo operator based and licensed in Alderney, had a positive momentum in the first half of this year and hopes the trend will continue into the remaining half.
On the other hand, Playtech’s financial trading division TradeTech has also performed well, while the company points out the market movements during September and October favoured their customers.
Playtech further strengthened its financial position during the latest period, which was done through the sale of the share the company has in online trading site Plus500. Selling 10% of its stake brought around €200 million, as well as a bond offering of €530 million.
All these funds, including the current cash reserves, were used to repay the debt made during the Snaitech acquisition, while a part was used to fund the return of high-revenue bonds and to pay off other expenses related to the aforementioned transaction.