Shares in London-listed gaming solutions provider Playtech fell by more than 20 per cent Thursday morning after the company warned that its full year profit would be 5 per cent lower than projected.
The company attributed the decline to a recent slowdown in certain Asian markets and the weaker than expected performance of the Sun Bingo business, although it noted that daily average revenue in the Gaming division had accelerated since the company's interim results.
"However, although daily average revenues in the Gaming division are currently higher than those reported at the time of the interim results, the Sun Bingo contract remains challenging due to lengthier seasonality and the relaunch of the new Sun Bingo site, and moreover there has been an impact from recent changing market conditions in certain parts of Asia," the company stated.
Playtech's financials division Tradetech Group continues to perform in-line with expectations, with the recently acquired TradeTech Alpha already making a positive contribution.
As a result, Playtech expects the group's full year performance to be 5 per cent below the bottom end of market expectations.
Analyst Simon Davies of Canaccord Genuity has reduced his full year EBITDA forecast for company from €349.7m to €322.1m in response, but cites a "strong pipeline of future contracts in a dynamic global market", as well as potential M&A activity, as reasons for optimism.
"The M&A pipeline remains very strong and 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," Playtech said.