Playtech Posts H1 Figures, Reveals a Surge in Revenue
According to the latest figures, Playtech generated €736 million in revenue during the six-month period ending on June 30, which represents a 69% increase when compared to the corresponding period of 2018. At the same time, the company’s adjuster earning jumped by 31% to €190.6 million.
Net Profit Goes Down
However, net profit fell to €16.8 million, dropping by a staggering 85%! The main factor behind this decline was the fact Playtech’s non-regulated B2B segment went down by more than 25%. Adjusted net profit was also down, ending the period at €70.7 million, which is 13% less than in the same period of last year.
It seems investors weren’t too shaken with this news, as Playtech announced it plans a €25 million buyback of its shares in the coming period.
The gain in revenue was attributed to Playtech’s acquisition of the leading Italian operator Snai, which made a significant contribution to the company’s B2C gambling revenue in the first half of the year, bringing €438.2 million, despite the fact Snai’s revenue recorded a drop of 11% when compared to the previous year, mainly due to the increase in taxes in Italy.
B2B segment recorded a 9% drop in revenue to €265.5 million. Online casino fell by 25%, though this result was offset by a 26% increase in sports betting. In total, B2B earning were down by 11% to €110.6 million, and the main reason for such performance was the fact that Playtech’s partners in Asia contributed less revenue than in the first half of 2018.
Asian Operations Struggle
Back in November last year, Playtech announced that its operations in Asia had finally stabilized at a yearly rate of €150 million. However, the renowned operator has made it clear it expects revenue of €115 million from Asia, with a chance this figure drop even more by the end of the year if the Philippines goes through with its plans and completely ban all online gambling on its territory.
Commenting on the recent results, Mor Weizer, Chief Executive Officer at Playtech said the company plan to respond to the current situation in Asia by launching new content, and by offering incentives to its licensees to promote these new games. According to Weizer, operations in Asia are still bringing a significant amount of money to the company.
Due to the current situation in Asia, Snai and Playtech’s debut on the Swedish reregulated market accounted for 87% of the entire gambling revenue, significantly improving over the last year’s figures.
Playtech pointed out that regulated markets across Europe, Central and South America and the U.S. remained crucial when it came to its continued growth.
The company also announced it planned to update its U.S. strategy by the end of this year. More details should be available in the coming period.