Playtech Profit Drops 34% Due to Poor Asian Market Performance

Staff Writer Industry News, Playtech 843

The new pricing conditions and competitive environment in Asia continue to weigh down Playtech and the company has reported a 34% revenue drop, despite all the efforts to protect their position in the Asian market.

Plummeting Profits Attributed to Competitive Pricing in Asia and the Gambling Crackdown in Malaysia

The latest developments have reflected on the company’s market cap and investors started dropping shares, leading to more than 25% stock value drop. The downward trend, however, is limited solely to proceeds coming from Asia, and the totals sales show a 35% increase. The B2B division has reported a significant increase in their daily revenue – around 6% higher than recorded last year.  

One of the most effective crackdowns on gambling organizations in Malaysia is considered to be the primary cause for the loss of revenue, along with the fluctuating and unfavourable pricing terms in China. 

European Market Expected to Grow Even Stronger with New Licencing Regulations 

According to Alan Jackson, Playtech Chairman, the recent setback is not an indicator of the company’s core strength and after the acquisition of Snaitech, Playtech has established a firm position in Europe.  

At the moment, the company is focusing on the regulated markets and the annual revenue from these sources is expected to reach 80%. The rise in numbers is already noticed – from 50% to almost 70% – and both Europe and Latam are identified as key markets with the highest potential to compensate for what was lost in Asia. 

New licences are expected to further promote the revenue increase and Playtech has already reached an agreement with Holland Casino; this is only the beginning of the company’s long-term plan to break into new markets; the negotiations with other customers are in progress and Playtech is looking forward to 2019, when a more liberal licencing system should be introduced across the European states. 

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