Casino software giant and tailor-made service provider Playtech appears to have borrowed from Peter in order to pay Paul. Or at least, an internal fiscal juggle that closely resembles a Peter/Paul situation. The juggle has by no means been on purpose, but happened because of a number of market occurrences, most notably a major shift that has been noticed in Asian markets.
Despite the fact that the group had reported a 54% increase in year-on-year revenue for the 2018 book-year, the company’s B2B division appears to have been struggling. The increase was mostly thanks to the acquisition of Italy’s Snaitech, and had inadvertently masked the B2B decline.
Chairman Alan Jackson spoke frankly about 2018 and said that the year had been an important one for the group in terms of overall growth and development. He pointed out that it had been anything but smooth sailing; in fact, 2018 had, according to Jackson, been chock-full of challenges.
But Jackson’s message wasn’t aimed at creating a sensation of doom and gloom; quite the contrary. When considering what Playtech had managed to do in terms of improving on its quality of earnings by venturing into strategic positions in rapidly growing regulated markets, 2018 was actually, by any good measure, a major success.
Jackson said that the progress that had been made in 2018, despite some unavoidable challenges having had to be navigated, has set the stage for a very progressive and successful 2019. Increased shareholder value and sustainable long-term success are the direct results of the considerations and compromises made over the course of last year.
It was in June last year that Playtech had acquired Italian operator Snaitech, and as such, Snaitech’s income and balance sheet was taken into account when the brand’s revenue growth for the year was calculated. In fact, €511.9 million of the reported revenue income for 2018 was actually generated by Snaitech.
Playtech did however play things by the book, and had in July issued a profit warning to the market and to its shareholders. The company has said that the decline in its B2B division was mostly as a result of the volatile nature of the Asian market.