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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Software & services

Playtech issues ‘in-line’ update as Asia revenues stabilise

The FTSE 250 gambling software firm said it remained on track to achieve adjusted underlying earnings (EBITDA) for 2018 of between €320mln and €360mln

Playtech PLC (LON:PTEC) has released an ‘in-line’ trading update, saying revenues from its Asian markets had stabilised.

The FTSE 250 gambling software firm said in trading for the six months from 30 June that overall performance was consistent with expectations from its half-year results in August and it remained on track to achieve adjusted underlying earnings (EBITDA) for 2018 of between €320mln and €360mln.

READ: Playtech sells entire 10% shareholding in online trading platform Plus500 for about £176mln

In its business-to-business (B2B) gaming division, Playtech said trading since interims had continued in line with “good revenue growth” outside Asia, while incomes in the region had stabilised at an annualised run-rate of around €150mln.

In the business-to-customer (B2C) gaming division, the company said its Snaitech subsidiary, which it acquired in June, had continued to trade in line with expectations along with the rest of the segment.

Meanwhile, the group’s TradeTech arm, which operates contracts for difference (CFD) brokerage Markets.com, had shown “positive momentum” in its underlying key performance indicators (KPIs) in the second half, although market movements had favoured customers in September and October.

Regarding its financial position, Playtech said the net proceeds of a €530mln bond offering earlier in the year along with existing reserves would be used to repay outstanding amounts under a bridge facility that was used to acquire Snaitech.

The company also said the sale of its 10% stake in CFD broker Plus500 Ltd (LON:PLUS) for £176mln in September had “continued to improve the efficiency of its balance sheet”.

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