Playtech Remains Resolute Despite Downtown In Earnings

Gaming technology giant Playtech announced that it expects earnings (full-year adjusted EBITDA) to be below estimates when releasing its year-to-date trading update.

Playtech said, however, that the “core business” of the company continues to perform well, with the downturn in earnings attributable to TradeTech, for which it expects results in 2019 to be “well below management expectations.”

The group said it is continuing its review of all “non-core” business units as it seeks to simplify the business structure, while the casual and social games unit of Playtech is currently being evaluated for potential sales.

Citing strong momentum in its B2B business, Playtech said that it continues to grow and exceed expectations in its Italian gambling division, Snaitech.

Indeed, despite TradeTech’s problems, Playtech reports a positive trading period for its core B2B business, executing its strategy of “catering for more than 1,000 brands and customers that previously Playtech did not have presence with.”

Playtech has reduced its focus on Asian markets outside Europe. It consolidated the Asian activities of the company, which this year is expected to contribute around € 115 million in revenue.

Playtech also expanded its revolving credit facility to € 317 million during the trading period, with the loan facility available for a four-year term with a one-year extension option.

Playtech also today announced a major digital service agreement with leading Colombian operator Wplay, extending its presence in Latin America.