Playtech PLC (LON:PTEC) has promised a €25mln share buyback but halved its dividend as part of a mixed set of interim results on Thursday.
Revenue was up 68% to €736.1mln in the first six months of the year, boosted by the acquisition of Italian consumer-focused betting business Snaitech in June last year.
The core B2B gambling business, where the company’s software is used by online casino and betting operators, grew sales 9% and reported “very strong momentum”, but the small financial arm TradeTech saw sales slide 25%.
At the bottom line, reported earnings per share plunged 82% to 5.5 euro cents as reported net profit plummeted 84% to €16.8mln.
Adjusted net profit, which directors believe most closely represents the trading performance of the business, was down 13% to €70.7mln, mainly due to a big increase in depreciation and amortisation, as well as interest costs and taxation following the Snaitech acquisition as well as increased group finance costs on its bonds.
But for the full year, management reiterated guidance for adjusted full-year underlying earnings (EBITDA) of €390mln-€415mln.
Operating cash flows amounted to €127.4mln, down from €222.5mln, with adjusted cash conversion of 92%.
"In our B2B business double digit growth in regulated markets outside of the UK has been accompanied by landmark new licensee wins in key regulated markets, laying the foundations for future growth," said chairman Alan Jackson.
"In our B2C business Snaitech continues to go from strength to strength demonstrating impressive growth momentum in a key market.
"The continued strength of the core business has allowed Playtech to continue its flexible shareholder returns policy, today declaring an additional buyback programme alongside an interim dividend."
The dividend was however cut 50% to 6.1 cents per share.