Playtech PLC (LON:PTEC) shares fell on Monday morning as it announced that revenues from Asia expected to be €70mln lower, and said that group’s performance is “broadly in line with expectations”.
The FTSE 250-listed firm said average daily revenue in Asia continues to be impacted by an increasingly competitive background, with a “particularly aggressive pricing environment from new entrants”.
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The online gaming software developer said average daily revenue excluding Asia are up 7% for the first half of 2018, compared to the same period last year and up 12% in the second quarter of 2018.
Playtech said its B2C Gaming Division and Trade Tech Group performing in line with expectation. The company believes the increased activity due to the FIFA World Cup and general strength in the Italian gaming market is encouraging for the current period.
The company now expects group adjusted EBITDA for 2018 in the range of €320mln to €360mln.
Mor Weizer, CEO, said: "Clearly the recent trading performance in Asia is disappointing. We have taken steps to further support our partners in the region and we will continue to work to preserve our position in the face of an increasingly competitive environment.”
He added: “The organic growth reported in the non-Asian B2B gaming business combined with the recent acquisition of Snaitech in Italy provides management with confidence that this strategy will materially improve the quality and diversification of Playtech's performance in 2018 and beyond."
In early morning trading, Playtech’s shares fell 22.47% to 583.80p.