Playtech has announced the financial results amid the global crisis of the corona virus outbreak. The company is so far dealing with success, but few sectors have slightly declined.
The operator has said there will be affected on the operation as well.
As per the statement, Playtech is working to protect the cash flow by managing capital expenditure and working capital. The company is also working to find opportunities for cost-savings to ensure that there is no long term impact on company success.
There has been an emphasis on the online casino competition as well. The statement said the Bingo and Poker business of Playtech have done well in recent times after the physical restrictions were imposed by various governments. However, the company has also said that the longer the COVID-19 restrictions remain, the riskier the behavior of the customer becomes.
However, despite the positive performance, the company warned that there could be possible issues. The company understands that restrictive measures will be imposed by the government. If a ‘shelter in place’ solution is put forward, then additional problems can be foreseen among the providers.
The statement has also clarified that the facility in the Philippines has been closed and the traffic has been re-directed to different other facilities. However, it continues to facilitate in Riga and other locations. However, it might be closed pretty soon as well.
Sports Betting has been one of the key success factors for online casinos. However, as there is no sporting activity, people are not visiting the platform. This is causing huge losses. Playtech is estimated to lose €4mn of Adjusted EBITDA per month before mitigation.
The operator has some top-performing operators across Europe. However, Italy based Snaitech has been closed. Playtech stands to lose €3mn of Adjusted EBITDA from there. HPYBET is also closed in Austria and Germany and will have a €0.5mn decline in Adjusted EBITDA in the restricted time, predicts Playtech.
Some of the operators have not faced the consequences of the global crisis. Sun Bingo and TradeTech look far away from disrupted. TradeTech has Adjusted EBITDA cross €20mn in 2020.