FTSE250 gambling technology group Playtech Plc has today issued a corporate profit warning, detailing continued Asian market woes.
Issuing its second Asia related profit warning over the past year, Playtech governance details a continued slowdown of its Asian market operations and services.
“As previously reported, average daily revenue in Asia continues to be impacted by an increasingly competitive backdrop. Towards the end of the first half, this market has seen a particularly aggressive pricing environment from new entrants to the market and this has impacted revenue” details Playtech in its corporate announcement.
Updating investors, Playtech governance has detailed that it sees ‘no material improvement’ with regards to its Malaysian position, a major territory for Playtech’s Asian market operations.
Due to the impacts, The FTSE firm anticipates its Asia market revenues to be circa €70 million below its original expectations, which will consequently impact Playtech full-year 2018 corporate run rate.
Playtech governance has moved to revise its full-year 2018 corporate forecast, targeting adjusted earnings between the range of €320-360 million.
Playtech’s revised forecast will not include the +€220 million of profits made from the operator selling divesting its stake in the enlarged GVC Holdings.
Commenting on the update, Mor Weizer, Group CEO of Playtech Plc, said: “Clearly the recent trading performance in Asia is disappointing. We have taken steps to further support our partners in the region and we will continue to work to preserve our position in the face of an increasingly competitive environment.
“In line with our stated strategy, progress in fast-growing, regulated and soon to-be-regulated markets continues apace. Momentum in key regulated markets continued in the first part of 2018 with new agreements with Gala Leisure in the UK, SAS in Portugal and Totalizator, the Polish national lottery. Additionally, regulatory developments in the US represent a significant opportunity for the Group. The organic growth reported in the non-Asian B2B gaming business combined with the recent acquisition of Snaitech in Italy provides management with confidence that this strategy will materially improve the quality and diversification of Playtech’s performance in 2018 and beyond.”