Playtech reports strong trading after profit drops
Playtech reported strong but weakening summer trading as the gambling software company posted a sharp fall in first-half profit caused by the Covid-19 crisis.
Pretax profit from continuing operations for the six months to the end of June fell 71% to €10.5m (£9.6m) as revenue dropped 23% to €564m. Adjusted earnings before interest, tax, depreciation and amortisation fell 16% to €162.3m.
The FTSE 250 company said it traded strongly in July and August though July was the best month of the two. Playtech shares fell 10% to 352p at 08:25 BST.
First-half performance was hit by the Covid-19 crisis but results were supported by the financial trading business of its TradeTech division. Increased market volatility more than doubled TradeTech's revenue to €87.3m and earnings rose to €52.8m from €8.2m.
Revenue at Snaitech, the business to consumer business, fell 46% to €215.5m as betting shops in Italy closed and sporting events were cancelled.
Playtech said it did not expect a repeat of TradeTech's performance in the second half because market volatility had eased. The company said it was cautious about the outlook, especially for consumer business.
Chief Financial Officer Andrew Smith said: "While the group saw an extremely strong start to the period in January and February driven by TradeTech, a strong performance from Snaitech and favourable sporting results, the adverse impacts of Covid-19 between mid-March and June led to the Group's total reported revenues decreasing."