Tuesday, August 16, 2022

Playtech cuts Asia revenue forecast


U.K.-listed Playtech Holdings has cut its forecast for revenue from Asia this year due to a clampdown in Malaysia and increasing competition in China.

The group now expects revenue of EUR115 million ($127.4 million) from Asia for this year, compared with its earlier forecast of EUR150 million. 

“Our business in Asia continues to be materially lower than previously following a significant increase in competition in China in 2018 from new market entrants while Malaysia also remains significantly lower than its previous highs.”

The company said the increased competition in China has led to a highly competitive pricing environment. To offset the impact, it says it is focused on underlining the premium position of its offering in the region. 

The company has also launched multiple new games, focusing on branded content and has provided incentive schemes to sub licensees. It added it will be implementing an incentivization scheme to reward sub-licensees for promoting Playtech content and generating higher volumes of business.

“Playtech continues to monitor developments in Asia closely and while operating at a lower run rate than before, Playtech's Asia business remains high margin and highly cash generative,” it said. 

Overall revenue for the group for the first half of the year jumped 68 percent to EUR736.1 million, while adjusted net profit was down 13 percent to EUR70.7 million.

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