Playtech shares tumble 20 per cent after warning on profits

 
Courtney Goldsmith
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Playtech makes software for gambling and bingo brands (Source: Getty)

Gambling software company Playtech's shares shed more than 20 per cent today after it warned its full-year performance would be around five per cent below the bottom end of market expectations.

The warning came after Playtech noted a slowdown in certain parts of Asia caused by recent changing market conditions would continue for the rest of the year.

"Whilst it had been expected that activity would return to normalised levels in a relatively short timeframe, we are now not expecting any significant improvement in 2017," Playtech said.

The company's share price closed 22.15 per cent lower at 768p.

Read more: Playtech shares fall after its founder sells a £340m stake

While daily average revenues in the company's gaming division accelerated in the quarter, the firm's Sun Bingo contract remained "challenging" due to a site re-launch.

"With the impact of certain Asian markets and Sun Bingo performance taken into account we now believe the group's performance for the full year will be around five per cent below the bottom end of market expectations."

Playtech said it would continue to look at acquisitions as the M&A pipeline remained "very strong".​

"The company is in active discussions with a range of gaming businesses consistent with executing this strategy and with the expectation that the relative contribution from Asia to the group will consistently reduce over time."

Read more: Playtech shares drop despite jump in profit and revenue

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