Playtech Shares Crash After Asian Revenues Slip

Internet game giant Playtech plc had its shares crash on Monday after revenues in Asia were expected to be €70 million lower than originally forecast.

As of press time, the shares of Playtech plunged more than 25% to 558.61 GBX. The company states that competition in Asia is to blame for the lower forecasts, as these companies are coming in with "aggressive pricing". The group went on to claim that revenues outside of Asia were up 7% for the first half of the year, piggybacking on World Cup wagers.

Commenting on the matter Playtech CEO Mor Weizer said, "Clearly the recent trading performance in Asia is disappointing. We have taken steps to further support our partners in the region and we will continue to work to preserve our position in the face of an increasingly competitive environment."

"The organic growth reported in the non-Asian B2B gaming business combined with the recent acquisition of Snaitech in Italy provides management with confidence that this strategy will materially improve the quality and diversification of Playtech's performance in 2018 and beyond."

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bgsharpe
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3 July 2018 - 1:51pm
#1

Obviously Playtech should put a bigger efforts in the Asian region if they want their shares prise to raise to the levels they wanting to be. Still there should be some relief for them as they doing well outside Asia but I'm sure they're eager to succeed there too as this is an important region for many of the top gambling brands, no matter the concrete sector they operating.

lvblck
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4 July 2018 - 11:10pm
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I've read some similar news in the past few days and it looks like Playtech is not doing that well. Obviously it will affect them and some hard work will need to be put in order to turn it around.

krcoolsongss
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6 July 2018 - 12:58pm
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Where in Asia ? I don't really know, but Playtech is offering their service to some online casinos in a country like Philippines where online gambling is legal. And these few companies are offering illegal services to players in other countries, as I observe occasionally these days.

Probably, I forecast their revenue too high in the first place.