Playtech Issues a Profit Warning Pressured by Asian Markets
Multi-award online gaming innovator Playtech has announced that the revenue of the firm would be impacted by growing competition from new companies coming from Asian markets.
After issuing the profit warning, the gaming platform developer has found share price on the London Stock Exchange to be down by nearly 30%.
A Playtech representative has commented on the matter by explaining the effect of the current changes. “Given the recent decline and in the absence of any change in market dynamics, we expect a significant impact on revenue throughout the rest of the year.”
Desperate Times Call for Desperate Measures
Playtech CEO Mor Weizer has openly expressed disappointment at the results, but affirmed that the company is firmly on its feet and taking measures to ensure future growth.
“We have taken steps to protect our partnerships in the region.”
The firm has since revised down its revenue forecast for 2018 by €70 million. Be that as it may, the firm’s spokesperson has added that the profit in the first six months of the ongoing year did in fact meet all expectations. It has so far had some precious acquisitions and new ventures that turned out in the company’s favour.
In April, Playtech announced it was obtaining a 70.6% stake in Italian betting and gaming company Snaitech for €291 million. Not counting Asia revenue, the revenue from the rest of the world went up by 7% in the first half of the year.
Previously, Playtech used to be controlled by Israeli billionaire Teddy Sagi, who has since sold most of his holdings (over $2 billion including dividends) in the company, as he plans to move the focus of his business from gambling to real estate.
However, Sagi still maintains a 6% stake in the firm, which has a market cap of £1.7 billion.
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