Playtech upbeat at AGM, blames drop in shares on wider industry concerns

The recent decline in the value of Playtech's share price is due to short-term concerns at a broader industry level, the software platform and content developer said at its annual general meeting on Wednesday morning. The recent decline in the value of Playtech's share price is due to short-term concerns at a broader industry level, the software platform and content developer said at its annual general meeting on Wednesday morning. The group said it was continuing its strategy of organic development, joint ventures and targeted acquisitions, which has enabled it to take advantage of "significant opportunities" in the global gambling industry. It is currently undergoing a review of the most effective use of its cash resources, saying it was "assessing the potential for further value-enhancing acquisitions, joint ventures and partnerships, particularly focusing on regulated markets". "Playtech has a proven ability to generate value through successful acquisitions, and management is confident that this will continue," Chairman Alan Jackson said. The company's cash position at the end of 2013 stood at €527.4m. Jackson continued: "The board believes that Playtech's huge experience with, and commitment to, regulated markets - combined with its proven track record - makes it the natural choice for operators in regulated markets. "Governments around the world are increasingly recognising the revenue potential of regulating online gambling. Playtech's long-time focus on regulated markets has ensured it is ideally positioned to benefit from opportunities in a geographically diverse range of regulated and soon-to-be-regulated markets." The company added that it remained "optimistic for future development in other markets", including the US, and said it is maintaining "a close watch on appropriate legislative developments in these markets". However, the upbeat comments failed to impress investors early on, with shares down 0.4% at 582.17p in the first half an hour of trade. NR