Running gambling websites in countries which don’t regulate betting is a risky business. That’s a lesson Playtech (PTEC) has learnt the hard way. Since Malaysia (an unregulated market and the second largest contributor to Playtech’s Asian revenues) suddenly placed a temporary ban on online gaming in late 2017, sales growth across the Asian market has slowed. Business-to-business gaming revenues are down 8 per cent on a like-for-like basis in the first few weeks of 2018 and there has been no improvement in the market outlook. This means that Numis’ forecasts (which assume for a recovery in Malaysia) might be optimistic. The broker expects adjusted cash profits and EPS of €357m (£316m) and 83ȼ, respectively, in 2018 (from €325m and 76ȼ in 2017).
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