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Playtech shares dive on Q1 revenue slowdown
Shares in gambling software provider Playtech sharply fell on Thursday as the company said daily revenue in the first 51 days of the first quarter were down 11% year-on-year against strong comparatives in Asia in the first half of 2017.
The company said full year adjusted earnings before interest, tax, depreciation and amortisation were up 11% on a constant currency basis to 322.1m, despite regulatory headwinds.
Revenues rose 18% on a constant currency basis to 807.1m, while adjusted net profits were up 8% to 231m. The total dividend was lifted 10% to 36 cents a share.
Playtech in November issued a profits warning after a government crackdown on gambling syndicates in Malaysia.The company on Thursday said its strategic position on Asia was "unchanged".
"We operate a risk based approach where our legal and compliance teams are consistently reviewing the regulatory environment to ensure that our presence is commercially beneficial to the group," Playtech said.
The company added that it was looking to diversify its revenue base by" investing in fast growing regulated and regulating markets in Europe and Latin America through organic growth and mergers and acquisition".
"This strategy will continue to drive the growth in Playtech's regulated revenue streams and will diversify the geographical make-up of our revenue base," the company said.