Playtech stock drops after Malaysia warning

Shares in London-listed Playtech plunged in Thursday trading after the group warned that the ongoing crackdown on illegal gaming in Malaysia continues to affect profit.

The stock was down more than 12 percent in early trading, before recovering some ground by late afternoon.

Average daily revenue in its gaming division for the first 51 days of the first quarter was down 11 percent. Excluding Asia ADR rose 3 percent in the period.

Overall for 2017, the group posted an 18 percent gain in profit on a constant currency basis to 807.1 million euros ($995.2 million).  Adjusted net profit was up 8 percent at $231.4 million.

The company warned in November that concerted efforts to stamp out illegal gambling in Malaysia may have an impact on its results. It said there had been no change in the operating environment since that announcement.

"Playtech delivered double digit revenue growth in 2017 despite headwinds in both regulated and unregulated operations. Playtech's performance continues to be converted into strong cash generation enabling a 10 percent increase to the full year dividend,” Chairman Alan Jackson said.



More news from this jurisdiction

MalaysiaSaturday, Mar 17, 2018

Berjaya Sports Toto, a Malaysian lottery company and car sales dealer, said its Q3 revenue edged up 2.7 percent as higher sales at the auto unit offset lower revenue from its Malaysian and Philippine lottery operations.

MalaysiaThursday, Mar 08, 2018

Over 3,197 gambling machines seized in raids over the last 3 years have been destroyed by Penang police.

MalaysiaWednesday, Feb 28, 2018

Lower revenue from its US business weighed on Genting Malaysia’s 17Q4 results, with group-wide profit and EBITDA falling during the quarter, according to a company filing to Bursa Malaysia.

MalaysiaTuesday, Jan 09, 2018

With the GITP expansion plan expected to start bearing fruit this year, 2018 should be a strong year for Genting Malaysia Bhd, say analysts.

Malaysia, South East AsiaMonday, Jan 08, 2018

RGB International Bhd says it is expecting its turnover to increase by RM50 million this year as a result of a number of concessions and leasing deals secured over the last two years.

MalaysiaTuesday, Dec 19, 2017

Berjaya Sports Toto said Q2 revenue fell almost 5 percent, dragged down by a weak performance at its H.R. Owen car sales unit and International Lottery & Totalizator Systems business.

MalaysiaFriday, Dec 15, 2017

Malaysia’s Resorts World Genting will open a Zouk Genting nightclub in January as part of its ongoing efforts to revamp the resort and improve its entertainment offerings.