Playtech backs full-year expectations
By Michele Maatouk
Date: Monday 12 Nov 2018
(Sharecast News) - Gambling software company Playtech reiterated its full-year guidance on Monday as it said trading since the end of June has been consistent with expectations at the time of the half-year results in August.
Playtech said it remains on track to achieve 2018 adjusted earnings before interest, taxes, depreciation and amortisation of between €320m and €360m.
The group said its B2B gaming division has continued in line with the trends reported at the interims, with good revenue growth outside of Asia and revenue from Asia stabilising at an annualised run-rate of around €150m.
The company, which is hosting an investor and analyst event on Wednesday, said the momentum reported at the interims in Snaitech - the Italian betting and gaming firm it bought earlier this year - has continued into the second half of the year, with the business still trading in line with the group's expectations.
The remainder of the B2C division also continues to perform in line with expectations.
Meanwhile, in financials division TradeTech, underlying KPIs have continued to display positive momentum in the second half, although market movements favoured customers particularly in September and October.
Playtech said its financial position remains "strong". During the period, it continued to improve the efficiency of its balance sheet with the sale of its stake in Plus500 and successful completion of a €530m bond offering.
The net proceeds of the offering, along with Playtech's existing cash resources, have been used to repay all amounts outstanding under the bridge facility utilised for the purposes of the acquisition of Snaitech, to fund the redemption of the outstanding high-yield bonds issued by Snaitech and to pay for other transaction-related costs and expenses.
At 0905 GMT, the shares were up 0.7% to 464.20p.
Canaccord Genuity said: Overall, this is a reassuring update. Given the extent of the deterioration in Asian trading over the past 12 months, it is reassuring to see some stabilisation."
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