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Playtech weak as gaming group confirms Asian revenues remained lower year-on-year

The FTSE 250-listed firm said Asian daily average revenues were down on last year due to strong comparatives and an "increasingly competitive backdrop"
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In a trading statement ahead of its AGM, Playtech said its consumer gaming division was performing in line with expectation

Playtech PLC (LON:PTEC) saw its shares fall on Wednesday after the gaming group confirmed that revenues in Asia remained lower year-on-year, although they had improved elsewhere in recent months.

In a trading statement ahead of its annual shareholder meeting, the FTSE 250-listed company said its consumer gaming division was performing in line with expectations, with the Sun Bingo contract continuing to enjoy "some" revenue improvement.

But the firm pointed out that, while B2B gaming average daily revenues outside of Asia have improved so far in 2018 compared to the same period last year, Asian daily average revenues were down on last year due to strong comparatives and an "increasingly competitive backdrop".

READ: Playtech cheers the City with €846mln acquisition of Italian rival Snaitech

The group - founded by Israeli billionaire Teddy Sagi - added that its management is "taking steps to protect its position in the region and drive revenues".

Playtech said its financial trading arm, TradeTech, saw a "strong" start to the year, with the Alpha unit created in 2017 following the acquisition of assets from ACM, providing a positive contribution to the business.

The firm agreed the €846m acquisition of Italian gaming and betting firm Snaitech last month and noted the firm on Tuesday reported 34% growth in underlying earnings (EBITDA) for the first quarter.

The group said the acquisition is expected to be completed "within the next few months".

The company also said further M&A opportunities are also being explored for complementary businesses in the B2B gaming division.

Playtech concluded: "Management is confident that achievements in 2017 and in 2018 to date have delivered a strong platform for further strategic and operational progress in 2018."

In afternoon trading, Playtech shares were 3.5% lower at 791.8p.

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