21st Feb 2019 08:21
LONDON (Alliance News) - Gaming software firm Playtech PLC said Thursday annual revenue rose sharply amid progress with recent acquisition, whilst reported profit suffered on one-off costs.
Meanwhile, the firm slashed its dividend payout as it turned attention to a new EUR40 million share buyback programme.
In 2018, pretax profit narrowed 31% to EUR183.4 million from EUR266.6 million the year prior. This was despite revenue rising 53% to EUR1.24 billion from EUR807.1 million the year before.
Profit performance was hurt by a rise in one-off costs - including depreciation & amortisation and professional costs related to acquisitions - with adjusted pretax profit widening 17% to EUR297.2 million from EUR254.3 million the year before.
"In the face of changing market dynamics Playtech achieved significant strategic and operational progress in 2018 delivering a markedly improved financial profile," Playtech Chairman Alan Jackson said. "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%."
"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," Jackson added.
Between June and August 2018, Playtech progressively acquired the whole of Italian gaming firm Snaitech SpA.
"Following shareholder engagement, I am pleased to announce our new progressive shareholder return policy", Jackson continued. "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 proposed a final dividend of 12.0 euro cents per share, almost half the 23.9 cents paid the year before. For the full year, the dividend was cut 33% to 24.1 cents from 36.0 cents the year prior.
This was after the firm decided to rebalance its shareholder distributions between a share buyback and the dividend, announcing a EUR40 million share buyback programme starting on Friday. The firm continues to expect distributions across both buybacks and dividends to be "progressive"
Shares in Playtech were 5.1% higher at 386.94 pence on Thursday, giving it a market capitalisation of GBP1.22 billion.
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