Playtech reflects on weathering 2020’s adversity

The gambling industry is counting the cost of the sweeping negative effects of the year gone past as it tallies up its 2020 financial numbers. The emerging picture reveals the impact of the ongoing global health crisis. Playtech’s report reveals a 25% group-wide decline for the year 2020.

The provider emphasised that it had been “severely impacted by COVID-19”, an expected consequence of the cancellation of major international sporting events, including the Olympic Games. Many retail operations that use Playtech software also had to shut down in line with global pandemic regulations.

Playtech’s 2020 report is extensive, but some details, in particular, stand out.

The company’s B2B segment reported a 10.6% fall in revenue to EUR 494.8 million with Asian revenue falling by 28%. Core B2B revenue dropped by 6% compared to the year prior while Playtech’s Italian unit, Snaitech fell by 37% compared to 2019.

B2C gambling fell hard by 33.7% while sports betting was less impacted; only dropping by 3%.

It isn’t all bad news though; the company’s report showed that a growing number of players are opting to satisfy their gambling entertainment needs online in the wake of the closures of land-based operations to stem the tide of the coronavirus. Playtech’s digital segment experienced a 30% growth across live casino, online casino, online bingo, and online poker.

Sights set

The executives at Playtech have faith that the company has the strength to weather the effects of the pandemic if they play their proverbial cards right. Group CEO, Mor Weizer, related that dynamic management went a long way in offsetting the brunt of pandemic restriction-related troubles.

Weizer explained that the group’s recent licensing of its products in four US states means they are still on track to make significant progress in the highly contested market. The company is also cultivating its presence in Latin American territories including Costa Rica and Panama.

Weizer wrapped up, saying that Playtech has started 2021 on a positive note despite the enduring ravages of the pandemic that has, as yet, slowed no signs of disappearing.

Playtech stock 2020