Online gaming and financial trading giant Playtech PLC (LON:PTEC) released its trading volumes for the first quarter of 2020, between 1 January and 30 April. The company has benefited from the Covid-19 induced market volatility and has reported strong performance for its financial division TradeTech Group (which includes CFH, Alpha, Markets.com)
The group’s highlights for Q1 include:
Strong Q1 with Adjusted EBITDA of €117 million.
In April 2020 Adjusted EBITDA was €23 million driven by TradeTech in addition to cash preservation measures.
Monthly cash flow remained positive in March and April (excluding contingent consideration payments and cash from land sale).
Significant operational progress with existing and new Tier-1 licensees and over 20 new brands added.
Over €600 million of cash available including fully drawn RCF; covenant light debt.
Further €14 million received from Snaitech land sale with remaining €36 million expected in early Q3.
Claire Milne appointed as Interim Chairman to provide continuity and stability.
Playtech’s financial division TradeTech has benefited from the recent rise in market volatility and generated Adjusted EBITDA of over €45 million for Q1 2020, exceeding the company’s expectations for the business.
TradeTech has also taken action to implement a more efficient balance sheet, which has released €10 million of cash that was previously tied up.
Mor Weizer, CEO, said:
So far this year, alongside actions taken to protect our people and our business, Playtech demonstrated remarkable operational resilience – demonstrating the strength and flexibility of our technology and our position in the industry. We have added new Tier 1 licensees, added over 20 new brands and expanded agreements with some of our largest existing customers.
Playtech also launched its new sustainable business strategy, Sustainable Success. The strategy will consolidate Playtech’s position as a global leader in safer products, data analytics and player engagement solutions. Playtech has made safer gambling a core pillar of its strategy. At this time actions being taken by Playtech and the wider industry to advance safer gambling and raise standards are more important than ever.
Alan Jackson, outgoing Chairman, commented:
Alan Jackson
It is with great pride that I look back over my time as Chairman of Playtech. During my time with the Company the gambling industry has changed dramatically and Playtech has demonstrated the strategic vision to grow into a diversified and trusted technology leader in its industry. 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.
Playtech warned in November 2019 that its full-year earnings would not meet analysts’ expectations. The company said that the trading conditions in its TradeTech unit were challenging during September and October and the company expected the division’s results for 2019 to be well below management’s expectations.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
