Gaming platform developer Playtech plc. (LSE:PTEC) issued a profit warning this morning that revenue would be hit by growing competition from new companies in Asian markets. Following the profit warning, Playtech's share price on the London Stock Exchange was down nearly 30%.
Playtech said, "Given the recent decline and in the absence of any change in market dynamics, we expect a significant impact on revenue throughout the rest of the year." The company has revised down its revenue forecast for 2018 by €70 million.
However, the company added that revenue in the first half of 2018, met expectations. Without Asia revenue, revenue from the rest of the world rose 7% in the first half of 2018.
"Recent trading performance in Asia is disappointing," Playtech CEO Mor Weizer said, "due to growing competition. We have taken steps to protect our partnerships in the region."
In April, Playtech announced it was acquiring a 70.6% stake in Italian betting and gaming firm Snaitech for €291 million.
In the past, Playtech was controlled by Israeli billionaire Teddy Sagi, who has sold most of his holdings (over $2 billion including dividends) in the company as he moves the focus of his business from gambling to real estate. Sagi maintains a 6% stake in Playtech, which has a market cap of £1.7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on July 2, 2018
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