Gaming Industry Challenges Have No Effect on Playtech Financial Growth
The London Stock Exchange listed gaming giant Playtech has been keeping its head above water despite the increasing challenges in the regulated markets across the UK and Europe.
Numbers Going Up
Both online software developers and operators have been hit with somewhat stiffer operating conditions and requirements but the regulatory challenges had no effect on Playtech’s positive numbers which come as a huge encouragement for the company.
Playtech is not worried by the escalation of regulatory changes, however. The total of 50% of the company’s sales already come from regulated markets and as a leading supplier of online software, Playtech is finding it easy to strike deals with companies from demanding regulated markets.
A number of 2016 acquisitions has helped Playtech maintain its industry’s leading status, whereas the company flourished across the verticals, registering a 30% year-on-year upgrade in revenue.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBIDTA) resulted in a 24% growth to £158 million, whereas the net profit soared to $83 million.
Acquisitions Playing Its Part
Playtech’s Sun Bingo acquisition is seen as the main boost for the numbers presented in the six-month financial report ending with 30 June 2017. Despite the challenges involved in a Sun Bingo deal, Playtech is starting to reap the fruits of its labour. Additionally, contract renewals with partners such as Paddy Power Betfair, Bet365 and the Greek lottery operator OPAP have all been instrumental in Playtech’s success rate.
In addition to moves within the betting world, one of the world’s leading gaming developers has most recently expanded its interest in the financial niche. Playtech purchased the UK-based brokerage firm Alpha earlier in August, in a £117 million deal that will see this company gradually integrate into Playtech’s financial division.
Playtech is currently rebranding its financial unit as the TradeTech Group and the acquisition of Alpha will now enable Playtech to offer an enhanced range of products to professional traders across the globe.