Technology giant Playtech has announced double-digit revenue growth for last year, despite what the igaming firm described in a trading update as operational “headwinds”.
Total revenues for the group in 2017 were €807.1m, up 18 per cent at constant currency, while adjusted EBITDA were up by 11 per cent to €322.1m.
The total annual dividend to shareholders was boosted to 10 per cent per share. The FTSE 250 company stated that it will continue to execute further mergers and acquisitions to help drive growth, following on from the integration of Playtech BGT Sports.
The results were in line with revised expectations following on from a profit warning relating to a gambling crackdown by authorities in Malaysia and issues with Sun Bingo. In today’s update, the firm stated there is “no change in Malaysia since our announcement in November.”
Average daily revenue in the daily B2B gaming division so far in 2018 is down 11 per cent on Q1 2017 (eight per cent excluding acquisitions and at constant currency). Excluding the Asian market, Playtech’s average daily revenue in its B2B gaming division so far in 2018 is up by four per cent, excluding acquisitions and at constant currency, on Q1 2017.
Playtech’s chairman Alan Jackson said: “Playtech delivered double digit revenue growth in 2017 despite headwinds in both regulated and unregulated operations. Playtech's performance continues to be converted into strong cash generation enabling a 10 per cent increase to the full year dividend.
"Playtech's strategy to improve the quality of earnings for the Group, organically and through M&A, was evident in the increase in regulated revenue to 54 per cent. The health of the core business coupled with the strength of the balance sheet means Playtech is strategically well placed to execute on M&A that will continue to drive this growth and further diversify Playtech's revenue base.
"Management is confident 2017 has delivered a strong platform for strategic progress in 2018 through execution of organic opportunities and M&A."
