Playtech has provided an update on trading in H2 2017 to date ahead of its event for investors and analysts on November 14.
As expected, daily average revenues in the gaming division accelerated following the interim results in late August. However, the Sun Bingo contract remains challenging due to lengthier seasonality and the relaunch of the new Sun Bingo site. Moreover, there has been an impact from recent changing market conditions in certain parts of Asia.
Playtech has seen a recent slowdown these areas due to the changing conditions. While it had been expected that activity would return to normalised levels in a relatively short timeframe, the company is now not expecting any significant improvement in 2017. In response to the recent changes, Playtech will continue to support its partners in Asia while continuing to increase its exposure in key regulated markets.
Playtech's non-Asian B2B business continues to perform broadly in line with expectations, with organic growth supplemented by acquisitions made in 2016 and 2017. With the impact of certain Asian markets and Sun Bingo performance taken into account, the company now believes performance for the full year will be around five per cent below the bottom end of market expectations.
TradeTech Group, Playtech’s financials division, is performing in line with expectations, with continued growth in underlying KPIs. TradeTech Alpha is already making a positive contribution since the acquisition of ACM assets last month.
Playtech will continue its strategy of focusing on both organic and inorganic revenue growth in regulated and to-be-regulated markets. The M&A pipeline remains very strong and the company is in active discussions with a range of gaming businesses consistent with executing this strategy.
Playtech will be hosting an event for investors and analysts on November 14 at the site of its new Live Casino studio in Riga, Latvia.
