Playtech Issues Earnings Update After Revenue Stabilize
Playtech has recently released a trading update that is “in line” with its Asian market revenue. Now that the market has stabilized, the company is more comfortable sharing the information with consumers and financial professionals.
What Is Playtech?
Founded in 1999, Playtech is a gambling software firm that falls under the FTSE 250 umbrella. Playtech stated its stock trades since June have been consistent with the revenue expectations from its half-year results in August. Playtech also confirmed it remained on track financially and received adjusted underlying earnings for 2018. The earnings were between €320 million and €360 million.
Playtech describes itself as the world’s largest supplier of online gaming and sports betting software, according to the company’s website. The slogan for the company is “the source of success.” This indicates to gamers that their odds of winning could be substantial when playing many of Playtech’s games.
Playtech’s Influence On the Gaming Market
Teddy Sagi started Playtech in Tartu, Estonia. He partnered with the casino and software industries and key players in multimedia and software engineering to start the company. Despite being established in 1999, Playtech didn’t debut its first casino product until 2001. Since then, Playtech has become a leader in designing, developing, and licensing mobile gambling activities. Playtech’s customers are mainly the gambling industry’s blue-chip companies. They include Bet365 (a U.K. company), William Hill, and Sisai (an Italian company). Regulated gambling agencies and governments also rely on Playtech for services. The AIM Market evaluated Playtech at a value of $950 million.
After the U.S. Congress passed the Unlawful Internet Gambling Enforcement Act in 2006, Playtech’s stock took a loss. In one day, there was a 40 percent fall. In October 2008, Playtech announced its acquisition of some of Sagi’s assets in exchange for $250 million. A few years later, in March 2011, Playtech purchased PT Turnkey Services from Sagi for £125 million. Two years after this purchase, Playtech acquired one of the world’s largest online poker communities, PokerStrategy.com. The community has nearly 7 million members and was previously owned by Holdings Ltd. The transaction was worth $49.2 million.
At the start of 2015, a number of online casinos powered by Playtech announced they would leave the German market. Playtech then acquired YoYo Games, the maker of GameMaker Studio, for $16.4 million. In mid-2015, Playtech said it would also acquire Plus500, a foreign exchange trader based online. The transition was worth $699 million, but the deal ended in November 2015.
Playtech’s Interaction With Other Businesses
The business-to-business (B2B) gaming division of Playtech says that trading has resulted in “good revenue growth” outside of Asia. Regional incomes were stabilizing at a rate of about €150 million per year. The B2C or business-to-consumer gaming division asserted that Snaitech continues to trade in keeping with the company’s expectations. Snaitech is a subsidiary Playtech acquired in June 2018.
TradeTech is also part of Playtech. TradeTech is in charge of the contracts for difference (CFD) brokerage from Markets.com. It has shown Playtech has “positive momentum.” Playtech’s key performance indicators are looking good for the second half of the year. Movements in the market were especially friendly in September and October.
Playtech’s Take On Its Financial Position
Playtech said it will use the net profits of a bond worth €530 million to repay its outstanding debt. In addition, the company will use its reserves.
Playtech priced the issue at 3.75 percent. The transaction took place under a bridge facility – the same one the company used to acquire Snaitech. Playtech also sold its 10 percent stake in Plus500 Ltd. (LON: PLUS), a CFD broker, in September for £176 million. The company confirmed this sale made its balance sheet more efficient.
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As an avid video poker player and lover of real money online blackjack, Thomas is the founder and guiding voice behind the Top Casino Picks community. A project manager at a London based Fortune 500 tech company, Thomas is an online casino enthusiast who founded TCP as a hobby to help other players avoid the headaches and hassles he has encountered when trying to find the best real money online casinos.
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