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Playtech warns of more trouble in Asia

The gaming software company has warned that profits from its Asian business will be lower than expected, this time because of rising competition
July 4, 2018

The Asian gaming market is proving to be a tough one for Playtech (PTEC). The gambling software company warned that sales from Asia would be around €70m (£62m) lower than previously expected during the second half of this year. Meanwhile, analysts at Shore Capital expect revenue for 2019 to be â‚¬100m (£88m) down on previous expectations. This will trickle down to adjusted cash profit, which is now expected to be in the range of €320m to €360m for 2018, compared with €322m in 2017. This includes an €80m contribution from recently acquired Italian website operator Snaitech. That's down on previous consensus expectations of between €325m and â‚¬330m, excluding Snaitech. 

IC TIP: Hold at 553p
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