Playtech’s adjusted profits fell by 34 per cent during H1 2018, as the igaming giant continued to feel the adverse effects of “disappointing market conditions” in Asia.
Competition and regulation in Asia led to adjusted profits of €83.3m, down from €125.5m year-on-year.
Total revenues, excluding Asia, were up by 35 per cent and the company, which completed its acquisition of Snaitech during the last quarter, pointed to continued progress on its balance sheet efficiency with the sale of its holding in Ladbrokes-Coral and GVC.
Alan Jackson, Playtech’s chairman, said: “Playtech has had an extremely busy first half of the year with important operational progress and new licensee wins in key strategic markets, the UK, Europe and Latin America. This continued progress is resulting in higher quality earnings for Playtech with Group revenue now 69 per cent regulated. Following headwinds in Asia and a full year contribution from the landmark Snaitech acquisition, regulated revenue at current run rate is expected to be c. 80 per cent in 2018.
“This progress is marked against the disappointing market conditions in Asia. However, it should be noted the headwinds in the Asian market are not reflective of the core strength of the Playtech model as the regulated segment continues to report organic growth and encouraging momentum.
“Looking to the future, the delivery of the Snaitech acquisition in the period has not only delivered geographical diversification of the Group’s revenue profile but more importantly delivered a cornerstone presence in the largest, and one of the fasted growing gambling markets in Europe.”
Sky News reported this week that Jackson, who has been chairman of Playtech since 2013, has been awarded a 17 per cent pay rise, moving from £384,000 to £450,000.
