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Playtech takes steps to protect Asia gaming arm
Playtech said business-to-business gaming revenues had mostly improved in recent months though it was having to take steps to protect its position in Asia as revenues were hit by strong competition.
Ahead of its annual shareholder meeting, the FTSE 250 company, founded by Israeli billionaire Teddy Sagi, said the consumer gaming division was performing in line with expectations, with the Sun Bingo contract continuing to enjoy "some" revenue improvement.
But while B2B gaming outside of Asia has improved average daily revenues so far in 2018 compared to the same period last year and versus the trends reported at the time of the full year results in February, Asian daily average revenues are down on last year due to strong comparatives and an "increasingly competitive backdrop", with management "taking steps to protect its position in the region and drive revenues", suggesting increased investment.
The financial trading arm, TradeTech, boasted a "strong" start to the year, with the Alpha unit created in 2017 following the acquisition of assets from ACM, providing a positive contribution to the business.
After the agreed 846m acquisition of Snaitech, for which shareholders will vote on 29 May, Playtech noted the Italian gaming and betting operator had reported 34% EBITDA growth in the first quarter the day before. The acquisition is expected to be completed "within the next few months".
Further M&A is being explored for complementary businesses in the B2B gaming division.
"Playtech has made significant progress on its strategy in 2018, both on an organic and inorganic basis," was the overall board view, with no mention made of the US Supreme Court decision to open up the sports betting market.
"Management is confident that achievements in 2017 and in 2018 to date have delivered a strong platform for further strategic and operational progress in 2018."