Playtech swings to €73m loss as lockdown hits casinos
Gambling software group Playtech swung to a €73m (£62.5m) loss last year as coronavirus lockdowns shuttered casinos across Europe.
The FTSE 250 firm’s loss compared to a €55.9m profit in the previous year. Revenue dropped by a quarter to just over €1bn.
Shares in Playtech dropped almost three per cent in morning trading.
The downbeat figures were driven by a 40 per cent decline in earnings from the firm’s business-to-business gambling division as the pandemic prompted retail closures.
Playtech also booked lower income from its consumer gambling division due to retail closures and the cancellation of sports fixtures.
This was partially offset by cost control and a 58 per cent rise in online revenue compared to the previous year.
Playtech booked higher costs last year due to its “aggressive” investment plans as it looks to capitalise on growth in the US and Latin America.
“The attitude and skill of our people, and the strength and diversification of our technology-led business model has enabled us to deliver a robust financial performance in spite of the challenging backdrop,” said chief executive Mor Weizer.
“Playtech also made significant strategic and operational progress by adding new brands, expanding existing relationships and entering new markets.”
Playtech last week appointed former 888 chair Brian Mattingley as its new chairman, ending its two-year effort to fill the role.