Playtech Explores New Acquisition Opportunities
Playtech, London-listed gaming technology provider, has announced they are exploring further acquisition opportunities one month after acquiring Italian Snaitech.
New Opportunities
The acquisition of Snaitech represents the continuation of Playtech strategy to invest in “leading retail brands in fast growing regulated markets”. This move will diversify group revenue, bring exposure to the huge Italian market and deliver significant value to shareholders.
Playtech will continue to explore further M&A opportunities which are complementary with the B2B Gaming division.
Numbers Going Up
British gambling technology company has reported 14% increase in revenue to €807 million for the full year 2017.
The increase was achieved despite the rough second half of the year including the regulatory issues in Asia, the loss of Marvel brand licensing rights and the loss of PokerStrategy’s affiliate marketing contract for PokerStars.
Business-to-customer gaming business is performing in line with the predictions mainly because of the recent Snaitech acquisition of 71% of their shares for €846 million.
Asian Update
In November 2017, Playtech issued a profit warning since their earnings had been hit by a crackdown on gambling syndicates in Malaysia, ending access to one of their largest Asian markets.
The company faces being shut out of untaxed or unregulated, so-called “grey” areas. But the provider has customers ranging from Ladbrokes Coral in the UK, Caliente in Mexico and AsianLogic across Asia and is reorienting their business towards regulated countries where growth rates are slower but less prone to legal surprises.
“This may impact the short term, but over the longer term, obviously the regulated growth opportunities far outweigh what we see elsewhere across the sector.” Chief Executive of Playtech, Mor Weizer explained the decision.
The Future Lies with Regulated Markets
Since 54% of Playtech revenue come from regulated markets in 2017, they tend to remain “acquisitive and opportunistic” in the future.
Excluding Asia, Playtech revenue in their business-to-business division had improved so far in the year-to-year date. However, in Asia, gaming revenues are lower than predicted due to intensifying competition and strong performance in the same period the previous year.
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