Playtech on track for EBITDA target as Asian headwinds stabilise
Asian revenues stabilise at €150m annualised run rate as B2C division performs in line with expectations
Playtech traded in line with expectations during Q3 and remains on track to meet full-year EBITDA targets despite Asian market difficulties flagged in August.
The London-listed software giant is set to deliver adjusted EBITDA in the range of €320m-€360m for 2018 after net adjusted profits fell by 34% in the first half of the year.
The dip was caused by a crackdown on gambling syndicates in Malaysia, largely ending the firm’s access to what had been one of its largest Asian markets, causing a sharp fall in share price.
But in a trading update this morning, Playtech confirmed that B2B revenue in Asia had stabilised at an annualised revenue run-rate of approximately €150m as predicted, supported by “good” B2B gaming revenue growth outside of Asia.
Canaccord analyst Simon Davies wrote: “Importantly, Asian revenues have stabilised at the €150m annualised run rate that was flagged at the time of the interims.
“Clearly, this still represents a significant year-on-year decline, but at least it has not deteriorated further. And B2B ex-Asia continues to deliver solid growth (we estimate +5% in Q3).”
Playtech’s B2C business, including Italian operator Snaitech, performed in line with expectations as listed in H1 while underlying KPIs for TradeTech “continued to display positive momentum”.
Playtech BGT Sports division has also integrated Build-A-Bet software onto its Bet Tracker app.
Bet Tracker allows retail customers to place bets on self-service betting terminals (SSBT) and track their progress on mobile devices away from a retail environment.
The new Build-A-Bet feature will allow customers to compile and save selections into a betting slip on mobile away from shop for later placement at a terminal via a unique QR code.
John Pettit, PBS’s UK, Ireland, Asia and Australia MD, said: “Bet Tracker is helping to change the face of retail betting.
“It already has a large following among customers of our partners, and the ‘anytime, anywhere’ tool will further boost customer engagement and loyalty for both big and small retail operators.”
Operators are also able to add their own branding within the BetTracker product and there are options for Build-A-Bet to be integrated into their own apps.