Playtech profits fall due to “disappointing” Asian markets as chairman scoops pay rise
Gambling software manufacturer Playtech has reported a 34 per cent in profits due to “disappointing” Asian markets.
The gaming and casino software provider said adjusted net profit had fallen to €83.3m (£74.8m) in the first half of the year, despite revenue rising four per cent.
Despite the profits falls, the company awarded chairman Alan Jackson a £66,000-a-year secret pay rise, it was revealed yesterday.
The company said increased competition in the Chinese gambling market was behind the drop, and said its activity in Malaysia, where police are cracking down on gambling, was “significantly” lower than its full year 2016 run rate.
It added that excluding Asia its revenue jumped 35 per cent.
Jackson said: “Playtech has had an extremely busy first half of the year with important operational progress and new licensee wins in key strategic markets, the UK, Europe and Latin America.”
He added: “The progress is marked against disappointing market conditions in Asia.
“However, it should be noted the headwinds in the Asian market are not reflective of the core strength of the Playtech model as the regulated segment continues to report organic growth and encouraging momentum.”
Jackson has seen his salary increase from £384,000 to £450,000-a-year, Sky News said yesterday, despite the company's share price almost halving over the course of the last year.
The majority of shareholders opposed the company's remuneration report and a third voted against the re-election of Jackson as chairman at an annual meeting in May.
Revenue at its gaming division, which operates products such as Age Of The Gods Bingo and Age Of The Gods Slots casino, grew 53 percent in regulated markets.