StockMarketWire.com - Playtech announced its expects 2019 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to be in the range of €390 to €415m.

The company said this was due to a €20m positive impact from IFRS 16 adopted as of 1 January 2019 and a positive EBITDA contribution in 2019.

The guidance depends on Asia remaining stable at approximately €150m annual revenue run rate.

FINANCIAL HIGHLIGHTS:

- B2B regulated gaming revenue growth of 12% at constant currency

- Proportion of regulated revenue increased to above 80% in FY 2018; 54% in FY 2017

- Completion of Snaitech acquisition; consolidated from 5 June; 100% owned from 3 August. The leading brand delivers a cornerstone presence in Europe's largest regulated market

- Very strong H2 2018 operational performance; synergy targets reaffirmed

- Adjusted EBITDA growth of 7% at constant currency as Snaitech acquisition offsets Asia decline

- Excluding acquisitions, B2B Gaming cost from operations reduced by €17m in 2018

- Combined with revenue growth led to significant margin expansion in B2B non-Asia

- B2B non-Asia gaming margin expected to increase to over 30% in medium term

- Net cash from operations up 26% at €387m

Playtech chairman Alan Jackson commented: "In the face of changing market dynamics Playtech achieved significant strategic and operational progress in 2018 delivering a markedly improved financial profile.

"The group achieved new licensee wins in key regulated markets, the UK, Europe and Latin America.

"The combination of progress in regulated markets and headwinds in unregulated activity saw regulated group revenue increase to over 80%.

"The acquisition of Snaitech and the ongoing strong performance of this business has delivered geographical diversification of the group's revenue profile, but more importantly delivered a leading presence in the largest, and one of the fastest growing gambling markets in Europe.

"Following shareholder engagement, I am pleased to announce our new progressive shareholder return policy.

"The strength of the balance sheet and cash flows allow the board to demonstrate its confidence in the future growth of the business through both a share buyback programme and a final recommended dividend."


At 8:06am: [LON:PTEC] Playtech Ltd share price was +48.5p at 416.6p



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