Playtech PLC (LON:PTEC) shocked the market this morning with a profit warning.
The company, which provides gaming platforms to online bingo and casino games operators, said full-year performance would be around 5% below the bottom end of market expectations.
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The technology firm blamed the profits shortfall on tough trading with the Sun Bingo contract and an impact from changing market conditions in certain parts of Asia.
“Whilst it had been expected that activity would return to normalised levels in a relatively short timeframe, we are now not expecting any significant improvement in 2017," the company said.
In response to the recent changes, Playtech will continue to support its partners in Asia while continuing to increase its exposure in key regulated markets, it added.
The non-Asian business-to-business operations continue to perform broadly in line with expectations.
The company said in its trading update that its mergers & acquisitions pipeline remains “very strong” and it is actively pursuing acquisition opportunities.
Shares in Playtech lost almost a quarter of their value in the wake of the profit warning.