Europeans now stuck at home due to the coronavirus outbreak could turn to igaming and virtual casinos as boredom sets in, London Stock Exchange-listed Playtech said on March 19.
The technology supplier to the igaming world and online operator said it was taking a major hit from the suspension of sports games across the world in recent days. The company said it intends to push ahead with plans with virtual gaming as one of several mitigation strategies to deal with a long-term coronavirus battle plan.
The coronavirus hit from cancellation of sporting events is likely to see a €4m per month change to adjusted EBITDA. Shares on the firm were down 6.47 per cent by 1pm in London. Playtech’s bingo and poker businesses saw an increase in users in recent days as people stuck at home look for something to do.
Although seen as a short-term positive, the company said the change in player habits could affect their bottom line in the medium to long term. In another part of its latest financial status, the company said its trading platform and payment gateway brought in a core profit of €30m in the first three months of 2020.
Like its competitors, Playtech has suspended all shareholder returns, both dividends and stock buybacks, as part of its mitigation strategy. Italy has been a sore point for the company with its Snaitech unit hit from the closure of the country due to the epidemic.
