Proactive Investors - Run By Investors For Investors

Gaming software group Playtech expects surge in 2019 earnings

Playtech expects bottom-line growth to accelerate in 2019 and is guiding for adjusted EBITDA of between €390-415mln
online gambling
Playtech provides software to online casino and betting firms around the world

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).

READ: Playtech reaches deal with Israeli taxman

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.

View full PTEC profile View Profile

Playtech PLC Timeline

Related Articles

Background check
May 13 2019
The company provides background check and medical screening solutions for employers to give them reliable information when hiring new staff.
location map
April 02 2019
Verify helps brands detect location ad-fraud and verify the authenticity of location data to ensure their campaigns are targeting the areas they are supposed to
Person watching TV on a smartphone
October 01 2018
"The business model is proving solid and with a higher percentage of revenues coming from recurrent subscriber-based licence fees, we are steadily reaching the point of profitability," said chief executive, Jose Luis Vazquez.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use