Playtech eyes Sun Bets deal as Asian headwinds stabilise
CEO Mor Weizer says discussions about combining Sun Bingo and Sun Bets contracts “are heading in the right direction”
Playtech could look to further its relationship with News Corp by working with Sun Bets as well as Sun Bingo, the provider confirmed this morning.
Playtech CEO Mor Weizer said Sun Bingo had seen an upturn in H1, with revenue up 28% to €15m, although it continues to operate at a loss.
And the improved performance has seen Playtech engage in discussions about taking up the Sun Bets contracts as well, as previously reported by EGR.
Weizer told EGR Intel: “Performance in Sun Bingo is improving and we are still negotiating the contract. It has taken longer than we originally forecast, but the reason for that is not a disagreement between the parties.
“News Corp is now looking at alternative partners for the Sun Bets part of the business and our negotiations reflect that. Given the nature and the status of these negotiations, we believe it will be mutually beneficial for all parties involved to find a joint way forward and continue growing the business.”
Playtech CEO Mor Weizer
He added: “We are absolutely looking at Sun Bets. Obviously there is no certainty that we will become partners or whether we will be able to conclude that conversation, but the discussions about both Sun Bingo and Sun Bets are heading in the right direction.”
Weizer was speaking after Playtech results this morning where the firm reported a revenue increase of 4% in H1 to €437m as half year profits plummeted by 34% on well-documented Asian market concerns.
EBITDA also fell by 15% year-on-year to €145m with B2B gaming revenues down 16% yoy, driven by the well-flagged Asian weakness, although management said it was confident Asia will stabilise during the second half of the year.
Outside Asia, the trading picture was positive with solid performance in B2B gaming revenues, up 3% in the UK and 10% rest of world.
Playtech’s bingo business was flat on a constancy currency basis at €13m as a result of tough competition in the sector and no meaningful contribution from its Buzz brand so far.