Playtech Coping with Lockdown Crisis

The coronavirus lockdown has had a dramatic effect on the fortunes of the online gaming industry, but one operator is reported to be bucking the overall industry trend.

Gaming developer giant Playtech has said that the early and decisive actions it took in the opening stages of the crisis has enabled it to outperform expectations over recent weeks.

The company has announced adjusted earnings of €23 million for the month of April, thanks to a number of factors, including the strong performance of its trading platform and payment services operator TradeTech, along with additional financial methods. Playtech has notably taken action to defer or cancel planned capital expenditure, as well as suspending shareholder payouts and bringing in salary reductions of as much as 20% across all board and executive members.

The company also announced that it has appointed Clair Milne as interim chairman in order to bring an element of stability to their operations.

During the first quarter of 2020, the company recorded adjusted earnings of €117 million, with another  €14 million deriving from a Snaitech land sale that is also expected to yield an extra €36 million in the third quarter. Although retail performance has been hit by the lockdown, and losses in earnings of €3 million have been noted in the sport division as a result of the cancellation of live sport, there was a boost from a new live casino deal to bring live casino games to the Asian market.

Speaking about the company’s performance, their outgoing chairman, Alan Jackson, said that he was proud of his time in charge, during which the company had grown into a diverse operator. And he praised his successor’s ability to handle the current crisis:

“In these uncertain times the board and I are confident Claire’s appointment as interim chairman will bring the required experience, industry knowledge and stability needed.”

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