Playtech points to ‘strong core’ as TradeTech struggles
Publishing its latest year-to-date trading update, the governance of Playtech Plc has this morning disclosed that full-year adjusted EBITDA will be below market consensus, despite the firm’s ‘core business’ segments continuing to perform strongly.
The FTSE250 technology group attributes its earnings slowdown to financial unit ‘TradeTech’, which expects 2019 results to be ‘well below management expectations’.
Updating investors, Playtech governance informs that it continues its review of all ‘non-core business units’ seeking to simplify the group’s structure – at present, Playtech’s ‘casual and social games’ unit is being assessed for a potential sale.
Despite the struggles of TradeTech, Playtech governance highlights a positive trading period for its ‘core B2B unit’, which is delivering on its 2019 commercial strategy of ‘catering to over 1,000 brands and customers that previously Playtech did not have any presence with’.
Strong B2B momentum, is supported by the continued growth of its Snaitech Italian gambling division, which is ‘exceeding group expectations’, increasing its market share within a disrupted Italian gambling marketplace.
Beyond Europe, Playtech has reduced its exposure within Asian markets, which has stabilised its Asia unit, which is anticipated to contribute approximately €115 million of revenues this 2019.
Further highlights see Playtech today announces a major digital services agreement with leading Colombian gambling operator Wplay – expanding its presence within South America
During the trading period, Playtech successfully extended its revolving credit facility to €317 million, with the loan facility open for a term of four years with a one-year extension option.
Source: SBC News
