Playtech Yearly Profits Below Expectations
The Isle of Man-based supplier of online gaming and sports betting software Playtech saw its value drop down by more than 20% in the last week of October, which forced the company to issue a profit warning.
Following the news, Playtech issued a trade update announcing its expectations regarding the year-end results.
According to the Douglas-headquartered company, it is expected that its full-year profits will be 5% below the bottom end of market expectations. It was also revealed that Playtech’s yearly pre-tax income would be around $300 million.
Following the issue of a profit warning, the company’s shares recorded a drop of 21.5% in price to $10.1. The shares reached a record high price of $13.6 back in June, but after the recent decline, they have surrendered their price gains during 2017.
Playtech has attributed the recent slowdown to the tumultuous situation in some Asian markets.
Without A Significant Improvement Soon
In a statement released following the recent ordeals, Playtech said the company wasn’t expecting any significant improvements during this year, although it was expected that activity would return to somewhat normal levels in a relatively short time frame.
The statement also said that Playtech’s contract with Sun Bingo remained challenging, while lengthier seasonality and the re-launch of the new Sun Bingo site were named as the main reason for such a situation.
Playtech signed a five-year contract with News UK to operate the Sun Bingo – the Sun newspaper’s bingo websites – back in 2015.
Playtech was established in 1999 and today provides software for online casinos, online poker rooms, online bingo games, online sports betting, scratch games, mobile gaming, live dealer games and fixed-odds arcade games online.
The company launched its first casino two years later, and since then has become one of the leading names in the industry.