Playtech stabilises Asia gaming sales after dramatic summer slowdown

An employee of Playtech, a London based...
Playtech's share price suffered when Asia sales slowed in July (Source: Getty)

Online gambling software supplier Playtech stuck to its most recent full-year forecast today, as sales in Asia stabilised.

The FTSE 250 group said earnings before interest, tax, depreciation and amortisation (Ebitda) should hit between €320m (£279.2m) and €360m​ for 2018.

The firm progressed in line with expectations in its B2B gaming division, the update for the second half of 2018 said, with good revenue growth outside of Asia.

In July, Playtech shares lost around a quarter of their value after the firm's Asia gaming business experienced a slowdown, which Playtech blamed on harsh pricing conditions for new entrants.

But today Playtech said that revenue from Asia had stabilised and was expected to come in at €150m (£131m) for the full year.

Snaitech, the Italian gaming and betting provider Playtech acquired a majority stake in earlier this year in an €846m deal, was said to enjoy continued momentum in the second half of the year. The rest of the group's B2C portfolio was also performing in line with expectations.

The group's financial position remained strong, it said, with the sale of Playtech's stake in international online trading firm Plus500 improving the company's balance sheet. The net proceeds of a €530m bond offering, together with Playtech's existing cash resources, had been used to repay the debts it built up to make the acquisition.