Playtech revenues up 18% despite 2017 setbacks
Supplier delivers broadly in line with guidance but growth stunted by regulatory headwinds across the global industry
Playtech this morning reported an 18%cc annual rise in revenues to €807m, achieving double-digit growth despite a 2017 filled with “headwinds” for the software supplier.
EBITDA for the period increased by 11%cc year-on-year to €322m in line with the firm’s November profit warning, while gaming revenue rose by 17%.
Playtech appears to have overcome setbacks to its gaming business in Asia, with casino revenues up 15%cc to €411m, despite a clampdown on Malaysian online gambling.
The supplier’s bingo business, which is now being run by MD Angus Nisbet, rose by 47%cc to €25m, primarily driven by the 2016 acquisition of UK business ECM Systems.
Chairman Alan Jackson said Playtech is involved in ongoing discussions with News UK over the continued improvement of Sun Bingo, which has displayed a significant drop from its prior performance on the Gamesys platform, according to Regulus Partners analyst Paul Leyland.
There was 7%cc growth in the group’s poker vertical to €9.4m, while Playtech’s sporting business rose by 58%cc to €86m due to the complete integration of Playtech BGT Sports.
“Playtech delivered double digit revenue growth in 2017 despite headwinds in both regulated and unregulated operations,” said Jackson.
“Playtech’s strategy to improve the quality of earnings for the Group, organically and through M&A, was evident in the increase in regulated revenue to 54%.
“The health of the core business, coupled with the strength of the balance sheet means Playtech is strategically well placed to execute on M&A that will continue to drive this growth and further diversify Playtech’s revenue base.”
Jackson added: “The completion of the Playtech BGT Sports integration and the completion of the new Live Casino studio in Riga are key operational milestones in the extension of Playtech’s omni-channel offering.
“Management is confident 2017 has delivered a strong platform for strategic progress in 2018 through the execution of organic opportunities and M&A,” he added.