Gaming technology giant Playtech has issued a profit warning, with the Asian market again the cited culprit.
This is the company’s second Asia-related profit warning in the last 12 months, with Playtech blaming the continued slowdown of its Asian market operations and services.
In a statement, the company said: “As previously reported, average daily revenue in Asia continues to be impacted by an increasingly competitive backdrop.
“Towards the end of the first half, this market has seen a particularly aggressive pricing environment from new entrants to the market and this has impacted revenue.”
Playtech said it has seen “no material improvement” in its Malaysian business, a key territory for Playtech’s Asian operations.
The FTSE-listed firm anticipates its Asia market revenues to be around €70m below its original expectations, which will in turn impact Playtech’s full-year results with the company now forecasting adjusted FY earnings of €320m to €360m.
The revised forecast will not include the €220m-plus profit from the sale of its stake in the enlarged GVC Holdings.
Mor Weizer, group CEO of Playtech, commented: “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.
“In line with our stated strategy, progress in fast-growing, regulated and soon to-be-regulated markets continues apace. Momentum in key regulated markets continued in the first part of 2018 with new agreements with Gala Leisure in the UK, SAS in Portugal and Totalizator, the Polish national lottery.
“Additionally, regulatory developments in the US represent a significant opportunity for the group. The organic growth reported in the non-Asian B2B gaming business combined with the recent acquisition of Snaitech in Italy provides management with confidence that this strategy will materially improve the quality and diversification of Playtech’s performance in 2018 and beyond.”