Coronavirus Expected to Impact Playtech’s 2020 Results
As the Coronavirus pandemic sweeps across the world, the effects are already being felt in the global online casino industry. Playtech, the online software developer, which provides games to gambling sites in South Africa and around the world, has already warned that the virus is expected to impact two of its largest markets – Asia and Italy.
Playtech executives made these comments when presenting the results for the year to the end of December, 2019. The group said that in the last two weeks, it has witnessed a “material” impact on its finances due to changes in client gambling patterns in Italy and across Asia.
“The current corona virus (COVID-19) may present potential risks to our key business generating markets such as Asia and Italy,” said Playtech in a statement.
“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,” said the group.
Key points from Playtech’s 2019 financial report:
• Revenue grew 23% to EUR1.5 billion.
• Discontinued operations and higher tax led to a net loss of EUR 19.6 million overall.
• Playtech’s core B2B division grew 15% thanks to gains in live casino and sports betting.
• Sports betting revenue grew 56%.
• Overall B2B gambling revenue dropped 2% to EUR 553.9 million.
• Playtech launched in Sweden and Switzerland.
• 50 new brands were added to Playtech’s software-as-a-service platform.
• The group increased its presence in the United States
• Playtech’s Italian Snaitech acquisition in 2018 proved to be a good move, with strong growth seen, especially in online gambling (31%).
• Another Playtech brand, Sun Bingo reported 19% revenue growth
“Our core B2B gambling business reported strong growth in 2019,” said the chairman of Playtech, Alan Jackson. “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.”
“As the business continues to transition and deliver a well-diversified higher quality revenue profile, I am pleased to report that the percentage of regulated revenue rose to 88% compared to 80% in 2018.”