Strong trading update for Playtech despite Sun Bingo challenges
Playtech has cited organic growth and recent acquisitions as the main reasons behind a "strong" performance in 2017 so far, although the performance from its Sun Bingo brand had been challenging.
Although the company opted not to release full results for the first part of the year, chairman Alan Jackson said acqusitions have helped boost revenues in the period.
"Growth in daily average revenues in the gaming division in the year to date remains strong with organic growth supplemented by acquisitions made in 2016 and 2017 including BGT, Quickspin, ECM and Eyecon," Jackson said.
“As previously indicated, the initial phase of our contract with the Sun Bingo has been more challenging than anticipated and we have recently taken further steps to address the issues, including significantly strengthening the management team, resulting in an improving performance.”
Simon French of Cenkos Securities pointed out that the challenging performance with Sun Bingo acted as a drag on Playtech's performance, but said that despite this Cenkos expected no change to the expectations of EBITDA €362m for the company.
French added: “The stock has performed strongly in 2017, up 19% YTD and there may be some profit taking on the back of this in-line statement but we would use any weakness as a buying opportunity.”
According to Jackson, Playtech’s results were in line with the company’s expectations for the period.
Jackson added: "The financials division has performed in line with our expectations, with continued growth in the B2B business and improved B2C customer KPIs; CFH continues to perform well following the acquisition in November.
"Our M&A pipeline remains strong and we continue to have active discussions with a range of businesses in the Gaming division as well as discussions for selective bolt-on acquisitions in the Financials division.”
"The board has confidence in the continued success of Playtech and of the business meeting its expectations for 2017.”