Playtech Expects €300 Million in Casino Profits Despite Pandemic Crisis
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Online gambling software developer Playtech expects better results in 2020 than expected. Several of its divisions had an extraordinary performance during the coronavirus crisis, pushing their numbers in blue.
The London Stock Exchange trader also announced an investor who “expected its performance for fiscal 20 to be ahead of consensus.” It indicated that it projects adjusted earnings of “at least 300 million euros.”
That represents about 78% of the total registered in 2019, however, investors pushed the share price up to 4.3% at the close of the day. It will be on march 11 when the official financial results are finally released.
The different divisions of Playtech collaborated to keep the business afloat by taking turns to overcome the uneven progression of the pandemic. During the first half of last year it was the supplier’s TradeTech finance division that made its contributions.
The disruption of sports left punters dry and the finance division discovered other financial betting options. Then, as the rise in financial income faded with the return of sports, TradeTech had to endure a difficult second half.
This year, Playtech decided to change the name of TradeTech to Finalto, which caused surprise in the industry. As the developer notified on tuesday that it continues in discussions about the possible sale of its B2B / B2C financial unit. It may be thinking of leaving the implementation of the changes to the new owner.
On the other hand, in the second half of the year TradeTech was relieved by Playtech’s Core B2B division and Snaitech, Italy’s B2C division. The provider noted that the B2B online casino, bingo and poker businesses performed well throughout 2020. This helped offset the sports division’s gaming disruption as well as prolonged retail closures.
Although Snaitech’s retail operations were also affected, its online performance cushioned losses. Although at the end of last year Snai’s online operations withstood a strong distributed denial of service (DDoS) attack.
These attacks temporarily took the operator’s website as well as its applications offline. But, the company later reported that the attackers were unable to access any customer accounts.
2020 was a challenging year for Playtech due to the regulatory disruption of its operations in the Asian gray / black market. However, it was able to make its debut on the New Jersey regulated market with two licensees.
It also successfully entered Latin America through a partial acquisition agreement with Wplay, the online operator with a Colombian license. In addition to operations hand in hand with its Mexican licensed partner Caliente.
The provider-operator fully disengaged from the Casino & Social Gaming Sector with the sale of its Scotland-based unit YoYo Games.
