Playtech revenue down 23% for H1 due to coronavirus impact
Playtech has seen its revenue drop 23% year-on-year for H1 2020, as a result of the coronavirus pandemic impacting its business operations.
Reported revenue for the six months to 30 June fell to €564m ($665.7m), while adjusted EBITDA dropped by 16%, down to €162.3m.
The supplier’s reported profit declined by 81% from 2019, down to €4.6m, and the group’s adjusted gross cash saw a decrease of 15%, to €349.6m.
Its B2C business was affected the most, with revenue dropping 41% to €253.5m for H1, mainly due to all major live sport being suspended in mid-March, along with the closures of retail venues for several months.
That meant its Italian betting operator Snaitech saw revenues fall by 46% down to €215.5m, although a rise in online play during lockdown saw its online revenue rise by 37%.
In terms of B2B, Playtech’s revenue declined by 13% to €229.7m, with adjusted EBITDA down 43%, at €63.2m.
Increased market volatility and trading volumes helped the supplier’s TradeTech division, which Playtech is considering selling, revenues grow by 123% compared to the same period last year, up to €87.3m, while adjusted EBITDA sky rocketed by 544%, to €52.8m.
Playtech CEO Mor Weizer, said: “The attitude of our people coupled with the resilience and diversification of our technology-led business model has delivered a strong first half performance during an extremely challenging period for the industry.
“These strengths, combined with early decisive action to focus on the safety of our employees and protect the Group’s cash flow, has placed us in a strong position to benefit from the recovery and to capture the exciting market opportunity in the US and Latin America.”
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