Online gaming giant Playtech is expecting to reach adjusted EBITDA of between €390m and €415m in 2019, following full-year results that showed regulated group revenue increasing to above 80 per cent in FY2018 (FY2017: 54 per cent).
The guidance issued reflects the assumption that Sun Bingo – which achieved revenue growth of 44 per cent at constant currency – will become profitable following the signing of a contract extension running to up to 15 years, and that Asia remains stable at around €150m annual revenue run rate.
The results for FY2018 also showed regulated B2B gaming revenue growing by 12 per cent at constant currency and total revenue increasing by 54 per cent to €1.24bn (FY 2017: €807.1m).
There was a seven per cent rise in adjusted core earnings for the year, with acquired Italian company Snaitech’s growth at 14 per cent (27 per cent online) offsetting the decline in Asia.
Playtech has also announced a €40m share buyback and a final dividend of €0.12 per share, bringing the total distributions in respect of 2018 slightly ahead of 2017.
At 9am this morning, Playtech’s share price was up by 18.2p to 386.3p (4.94 per cent).
Alan Jackson, chairman of Playtech, said: "In the face of changing market dynamics Playtech achieved significant strategic and operational progress in 2018 delivering a markedly improved financial profile. The group achieved new licensee wins in key regulated markets, the UK, Europe and Latin America. The combination of progress in regulated markets and headwinds in unregulated activity saw regulated group revenue increase to over 80 per cent.
"The acquisition of Snaitech and the ongoing strong performance of this business has delivered geographical diversification of the group's revenue profile, but more importantly delivered a leading presence in the largest, and one of the fastest growing gambling markets in Europe.
"Following shareholder engagement, I am pleased to announce our new progressive shareholder return policy. The strength of the balance sheet and cash flows allow the board to demonstrate its confidence in the future growth of the business through both a share buyback programme and a final recommended dividend."
Playtech also announced that Andrew Thomas has given notice to the board of his intention not to stand for re-election as a non-executive director.
