2nd Jul 2018 08:59
LONDON (Alliance News) - Shares in Playtech PLC plunged on Monday turning the gaming and betting software company into the worst performer of the FTSE 250 index after it said it expects revenue from its Asian operation lower than forecast.
Playtech shares were trading 24% lower at 570.80 pence each.
The company expects its full-year 2018 adjusted earnings to be higher than in 2017, despite suffering a "disappointing" performance in Asia.
Playtech said it forecast adjusted earnings before interest, taxes, depreciation and amortisation to be in the range of EUR320 million to EUR360 million. For 2017 Playtech reported adjusted Ebitda of EUR322.1 million.
In Asia, due to an "increasingly competitive backdrop" Playtech expects revenue to be EUR70 million lower than it originally forecast.
"Looking to the remainder of the year, the current run rate in Asia is materially below both the average in the second half of 2017 and the average which was expected for the second half of 2018 at the start of the year," the company said.
Consolidating the Italian gaming business Snaitech, acquired in June, will generate around EUR80 million of adjusted Ebitda, based on Snaitech's current market consensus, the company said.
The company's average daily revenue for the year to-date excluding Asia is up 7% compared to the same period last year.
By division, the B2C Gaming Division is performing in line with expectations, the company said. TradeTech Group reported a "good start" to 2018, delivering a strong performance.
The company will announce its results for the six months to June 30 on August 23.
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