Everything has stopped in Italy and gambling operators will follow suit. The movement in the country has been restricted due to the spread of coronavirus and people can leave the country under strict terms. As a result, people are staying at home while waiting for the cruel virus to dissipate across the globe. In light of the current situation, Playtech has decided to halt all activities on Italian ground until next month.
Playtech Ceases all Activities in the Italian Market
More About the Decision
The top-notch provider of online gaming and tech solutions has already announced a significant drop in revenues due to coronavirus dissemination. Following the situation in Italy and China, the brand has stopped its operation until April 3. At the moment, it holds a 70.6% stake in sports gambling enterprise, Snaitech.
Italy has already reported more than 2000 fatalities resulting from COVID-19. The country has already closed some public areas including arcade halls, bingo sites, betting shops, cinemas, discos, pubs, and gyms. Additionally, all sports events, including Seria A football competitions, are canceled. The government has also prohibited weddings and funerals.
According to the estimations, global gaming operators have already recorded a 1-4% loss in gaming revenues. This trend will continue over the next period and recovery will be slow and uncertain. Macau is one of the international territories which already made small progress towards recovery. The rest of the world is slowly moving to rid itself of the devastating consequences.
Just recently, Playtech revealed successful results in 2019 with plans to continue in the same rhythm in 2020. The company has marked an incredible rise in revenues of $1.7 billion, which is 23% higher than the year before. It has also reported an adjusted level of EBITDA (earnings before interest, taxes, depreciation, and amortization) of 11% to $433.28 million. For the same period, the operator was forced to declare a $22.16-million loss due to discontinued activities and tax liabilities. Following the current situation, its 2020 performance could be even more inferior.
About the Brand
Playtech is the world-leading supplier of casino content, listed on the London Main Market of Stock Exchange. Established in 1999, it continues to deliver cutting-edge content aimed for a wide range of users across online, retail and mobile platforms. It specializes in omni-channel solutions as well as in the delivery of casino, lottery and slot titles. At the moment, the enterprise employs 5900 people around 18 locations.
Source: Gibbs, Erik. “Playtech decides to take a break in Italy”. Calvin Ayre. March 11, 2020.