Playtech shares jump on earnings success
Provider hails improved revenue mix as regulated revenues grow and Asia continues to struggle
Playtech shares jumped almost 5% this morning after the provider beat its consensus earnings forecasts by more than €20m, with adjusted EBITDA up 7% year-on-year to €343m
The London-listed firm also hailed the improvement in its revenue mix, as regulated revenues made up 20% of the total thanks to progress in regulated markets and headwinds in unregulated activity.
Pro-forma revenues fell 4.1% to €1.6bn for FY2018, although reported revenues rose 55% cc thanks to the Snaitech acquisition which was consolidated on 5 June.
The pro-forma revenues were hurt by well-flagged Asian issues, with revenues from the region down 26%.
Overall, B2B revenues were down 13% to €566m, with casino down 22% to €322m thanks to Asia.
B2B sports grew by 12% to €98m, driven by SSBT product development. Bingo performance grew 2% cc to €26m, while poker also grew 2% poker also grew by 2% to €9.5m.
On the B2C side, Snai grew revenues 1% to €894.6m with 27% online growth offsetting 3% machines decline.
Sun Bingo grew 44% cc to €33.7m but still cost the firm more than €20m. The two firms have renegotiated the contract to stop minimum revenue guarantees from 2021.
Playtech chairman Alan Jackson said: “In the face of changing market dynamics Playtech achieved significant strategic and operational progress in 2018 delivering a markedly improved financial profile.
“The acquisition of Snaitech and the ongoing strong performance of this business has delivered geographical diversification of the Group’s revenue profile, but more importantly delivered a leading presence in the largest, and one of the fastest growing gambling markets in Europe.”
Jackson also announced Playtech was kicking off share buyback scheme up to €40m, as previously called for by activist investor Jason Ader.