Publishing its year-to-date trading update, gaming technology giant Playtech has reported that it expects earnings (full-year adjusted EBITDA) to be below expectations.
Playtech said however that the group’s “core business” continues to perform strongly, with the earnings slowdown attributed to TradeTech, for which it anticipates 2019 performance to be “well below management expectations”.
The group said it is continuing with its review of all “non-core” business units as it endeavours to simplify the structure of the business, with Playtech’s casual and social games unit currently is being assessed for a potential sale.
Citing strong momentum in its B2B business, Playtech said its Italian gambling division Snaitech continues to grow and exceed expectations.
Indeed, in spite of the problems at TradeTech, Playtech reports a positive trading period for its core B2B business, executing on its strategy of “catering to more than 1,000 brands and customers that previously Playtech did not have any presence with”.
Beyond Europe, Playtech has reduced its exposure within Asian markets. This has stabilised the group’s Asian operations, which is expected to contribute around €115m in revenue this year.
During the trading period, Playtech also extended its revolving credit facility to €317m, with the loan facility open for a term of four years with an option for a one-year extension.
Playtech has also today announced a significant digital services agreement with leading Colombian operator Wplay, thus expanding its reach within Latin America