Online gaming firm Playtech (LON:PTEC) saw its shares drop by 29% to 534p (as at 10:40 BST) after the company issued a warning about revenues and profits. The firm said that while average daily revenues in the rest of the world were up by 7%, performance in Asia had continued to worsen as the business faced increased competition from aggressive market entrants.
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Management said that while results for the first half will be broadly in line with guidance, revenues for the second half and the full year would be roughly €70 million below original guidance due to the issues in Asia. Additionally, given these issues and the acquisition of Snaitech, EBITDA for the year is now forecast to be between €320-360 million. CEO Mor Weizer said: “Clearly the recent trading performance in Asia is disappointing. We have taken steps to further support our partners in the region and we will continue to work to preserve our position in the face of an increasingly competitive environment“.