Playtech flags negative Coronavirus impact as overall B2B revenue drops 2%
London-listed supplier expects 2020 trading to take a hit after COVID-19 outbreak in Italy and Asia
Playtech today reported a 2% revenue decrease in its overall B2B gambling business and warned that Coronavirus would damage 2020 figures.
Publishing its full-year financial results, the London-listed supplier revealed that B2B gambling revenue fell by 2% to €553.9m overall, largely due to a 38% decline in revenues from Asia.
The fall was partially offset by revenue growth of 17% in regulated markets, driven mainly by sports hardware sales amounting to €56.2m, as B2B revenues in the UK also jumped 17%.
Adjusted EBITDA from B2B dropped by 15% to €214.8m, down from €252.5m in 2018, again due to a significant fall in casino revenues from Asia.
The supplier’s B2C operation – primarily Italian sports betting operator Snaitech – reported adjusted EBITDA of 162.4m, driven by 31% growth in online stakes.
In the UK, Sun Bingo saw 19% constant currency revenue growth to €40m.
Playtech said Snaitech had enjoyed a strong start to 2020, but the supplier expects the brand to be negatively impacted by the recent Coronavirus outbreak in Italy.
Asia revenue in February is also expected to be €7m, due to downward trends as a result of the COVID-19 epidemic.
Overall group revenue for 2019 climbed 22% on a constant currency basis to €1.51bn, while Playtech discontinued its casual gaming operation as part of a rationalisation process to focus on core assets.
Playtech chairman Alan Jackson – who will be replaced this year – said: “The strength of our diversified business model, focus on cash flows and strong balance sheet has allowed Playtech to announce today further shareholder returns with a new €40m share buyback programme alongside our final dividend.
“Playtech has taken steps to improve its corporate governance with two new non-executive directors appointed in 2019 and I will in due course be announcing my successor as chairman, who will lead the board during the next phase of Playtech’s exciting future,” he added.
Playtech’s share price dropped by 12% today to mark an eight-year stock market low.