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Online gambling outfit Playtech (LON:PTEC) earned revenues of €436.5 million for the six months ended 30th June, a 4% improvement over the same period of the prior year despite tough market conditions in Asia dragging results down. Cash generation from operations rose by 51%. Profits for the period rose to €112.4 million, but non-cash impairments on equity instruments ate into the adjusted profits and EPS.
Management said that trading outside of Asia had been positive during the start of the third quarter and that the integration of Snaitech was proceeding as planned.
Chairman Alan Jackson commented that: “Playtech has had an extremely busy first half of the year with important operational progress and new licensee wins in key strategic markets, the UK, Europe and Latin America. This continued progress is resulting in higher quality earnings for Playtech with Group revenue now 69% regulated. Following headwinds in Asia and a full year contribution from the landmark Snaitech acquisition, regulated revenue at current run rate is expected to be c. 80% in 2018.
This progress is marked against the disappointing market conditions in Asia. However, it should be noted the headwinds in the Asian market are not reflective of the core strength of the Playtech model as the regulated segment continues to report organic growth and encouraging momentum.”
Shares in the business climbed by 5.45% to 545.40p (as of 11:45 BST).