Gambling software group Playtech PLC (LON:PTEC) expects underlying profits to rise by as much as 21% in 2019 after delivering a “markedly improved” performance last year.
The FTSE 250 firm, whose software is used by online casino and betting operators, saw revenue surged 54% to €1.24bn (2017: €0.81bn) in the year ended 31 December 2018, while adjusted underlying earnings (EBITDA) climbed 7% to €343mln (2017: €322.1mln).
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Underpinning the solid results was a string of new licensee wins in its key markets of UK, Europe and Latin America.
Playtech expects the bottom-line growth to accelerate in 2019, though, and is guiding for adjusted EBITDA of between €390-415mln.
That forecast assumes a €20mln boost from new accounting regulations, a positive contribution from Sun Bingo and stable performance in Asia, where it has struggled of late mid “disappointing” trading conditions.
Good start to new year
Regulated B2B gaming revenue is up 7% so far in 2019, while Snaitech, the Italian gaming firm it bought last summer, has enjoyed a “strong start” to the year, too.
“In the face of changing market dynamics Playtech achieved significant strategic and operational progress in 2018 delivering a markedly improved financial profile,” said chairman Alan Jackson.
“The acquisition of Snaitech and the ongoing strong performance of this business has delivered geographical diversification of the Group's revenue profile, but more importantly delivered a leading presence in the largest, and one of the fastest growing gambling markets in Europe.”
New shareholder returns policy
Jackson also touched on a new shareholder return policy that will see it up its share buyback programme and dial back on its dividend.
Reflecting the new policy, Playtech has proposed a total dividend of €0.241 for 2018, compared with the €0.36 pay-out a year earlier.
Playtech shares rose 3.8% to 382.2p in early deals on Thursday.