Playtech 2020 results to miss expectations as Italy, Asia hit by coronavirus

(Sharecast News) - Playtech warned on Thursday that its 2020 results were likely to be below market expectations as two of its largest markets have taken a hit from the coronavirus.
In its results for the year to the end of December, the company said that in the past two weeks, it has seen a "material" impact from changes in customer patterns in Asia and Italy due to the coronavirus.

At 0940 GMT, the shares were down 9.5% at 277.90p.

"The current corona virus (COVID-19) may present potential risks to our key business generating markets such as Asia and Italy," it said.

"Playtech continues to monitor developments in Asia closely including the negative impact of COVID-19 in February. While operating at a lower run rate than before, Playtech's Asia business remains high margin and highly cash generative," it added.

For the year, Playtech posted a 23% rise in revenue to €1.5bn and an 11% jump in adjusted earnings before interest, tax, depreciation and amortisation to €383.1m, driven by a "strong" performance in the core B2B and B2C gambling business and the inclusion of a full year of Snaitech results.

Chairman Alan Jackson said: "Our core B2B gambling business reported strong growth in 2019. In addition we made further strategic progress by entering newly regulated markets, signing new customers, expanding existing relationships and continuing to innovate with new product launches.

"Together these are laying the foundations for our future growth. In our B2C gambling business, Snaitech had a fantastic 2019 and continues to gain market share and reached the number one market share position for online betting and gaming in Italy in H2 2019."