Playtech Share Price Plummets Due To Second Profit Warning For 2018
Playtech have issued a second profit warning for 2018 which resulted in the share price plummeting by 26 percent. The FTSE 250 gambling giant said in a trading statement that they expect their revenues from Asia in 2018 to be €70m lower than previously predicted.
The main reason for their Asian woes continues to be the continued crackdown of gambling syndicates in Malaysia and increased competition in China. This decrease in revenues will affect the company revenues as Asia is estimated to make up around 40 percent of Playtech’s revenues.
Playtech went on to say that overall revenues for H1 were broadly in line with expectations. This was assisted by increase activity due to FIFA World Cup as well as a strong presence in Italy. Excluding Asia daily average revenues for the year to date were up 7 percent from last year.
CEO Mor Weizer said,” Clearly the recent trading performance in Asia is disappointing. We have taken steps to further support our partners in the region and we will continue to work to preserve our position in the face of an increasingly competitive environment.”
On the positive side Weizer emphasized Playtech growth in regulated markets and even mentioned possible opportunities arising in the US following the PASPA Supreme Court ruling.