Playtech 2019 Losses Attributed to Taxes and Discontinued Operations

Home » Playtech 2019 Losses Attributed to Taxes and Discontinued Operations

In 2019, Playtech suffered losses despite a strong performance from Snaitech, its Italian based B2B. During the launch of its 31st December 2019 results, the firm stated that its revenue went up by 23 percent to a total of €1.51 billion, while their adjusted EBITDA rose by 11 percent to €383.1 million. But, as a result of taxes and discounted operations, the firm reported a total loss of €19.6 million.

The firm’s revenue was brought about by a growth of 15 percent in its B2B division mostly thanks to the gains brought on by live casino and sports. Revenues from sports went up by 56 percent, and this rise was aided by overall hardware sales, gambling revenues went down by 2 percent to a total of €553.9 million.

The firm stated that other factors in its B2B include new markets in Switzerland and Sweden, together with the new 50 brands it added to its list of Software-as-a-service offering as well as an increase presence in America.

Growth in revenue was boosted through inclusion of a whole year’s worth of Snaitech’s performance results, especially after the acquisition of an Italian B2B brand two years ago. Snaitech experienced good growth in its online stake by about 31 percent. Sun Bingo experienced about 19 percent growth in revenue at stable currency to about €40.0 million last year.

This segment also enjoyed good returns from HPYBET retail in Austria and Germany, where growth went up 40 percent to €19.7 million. B2B revenues from gambling went up 56 percent to a total of €900.5 million, which makes this the biggest segment for the firm.

But, the years wasn’t as successful for Playtech’s B2C and B2B financial segment, TradeTech Group, which had a 27 percent drop in its revenues to €67.9 million. The firm stated that this drop was as a result of a challenging market condition in 2019.

PlayTech’s Chairman, Alan Jackson, stated that their main B2B gambling reports a robust growth last year. Additionally, the firm made strategic progress by joining a newly regulated market, signing on new customers, growing its existing relationship as well as advancing its innovativeness and launching new products.

Reported profits, before tax, arising from continued operations amounted to €13.2 million, which translates to 90 percent decrease, and when operation tax was included, the firm experienced a total loss worth €19.6 million.

In addition, depreciation rose by 21 percent to sum of €51.5 million, primarily due to the acquisition of Snaitech, and this added onto the initial depreciation which totaled up to €18.4 million last year in comparison to a seven month depreciation 2 years prior.

Playtech stated that they are in the process of making a strategic review of their non-performing assets. A similar review of their casual gaming business was done last year. They discontinued this segment and the firm plans to dispose it soon due to the €23.7 million loss they made in 2019.

In the meantime, the management at PlayTech is focusing on delivering a transformative agenda for the firm which began in 2017, and is designed to help secure long term growth.

Source: https://www.igamingbusiness.com/news/taxes-and-discontinued-operations-lead-playtech-2019-loss

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