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Playtech disposes of Finalto, adjusted EBITDA ahead of expectations
26th May 2021 08:08
(Sharecast News) - Online gaming and sports betting software provider Playtech has agreed to sell its financial trading unit Finalto to a consortium led by Barinboim Group for $210.0m.
Playtech will receive net cash proceeds on completion will of $61.0m, with the group stating it would contemplate a return to shareholders at the time, depending on the business environment.
The AIM-listed group stated that going forward, it would now be solely focussed on the business-to-business and business-to-consumer gambling markets.
Chief executive Mor Weizer said: "Playtech has a stated strategy to simplify the group and today's announcement is the conclusion of a two-year process in which Playtech has explored all routes to maximise value and certainty for shareholders from Finalto."
Elsewhere, Playtech stated online growth in both its B2B wing and its Snaitech subsidiary had remained "very strong" year-to-date, leaving the group ahead of adjusted underlying earnings expectations at the start of April.
"This outperformance for the first four months provides comfort for the H1 outlook despite the loss of retail revenues in Italy that will impact Q2," said Playtech.
"Whilst the Covid-19 pandemic continues to pose challenges and the macroeconomic outlook remains uncertain, given the strong start to the year the board is confident of the company's prospects for the remainder of 2021, while mindful of the possibility for further unexpected lockdowns".
As of 0925 BST, Playtech shares were up 0.70% at 458.40p.
Playtech will receive net cash proceeds on completion will of $61.0m, with the group stating it would contemplate a return to shareholders at the time, depending on the business environment.
The AIM-listed group stated that going forward, it would now be solely focussed on the business-to-business and business-to-consumer gambling markets.
Chief executive Mor Weizer said: "Playtech has a stated strategy to simplify the group and today's announcement is the conclusion of a two-year process in which Playtech has explored all routes to maximise value and certainty for shareholders from Finalto."
Elsewhere, Playtech stated online growth in both its B2B wing and its Snaitech subsidiary had remained "very strong" year-to-date, leaving the group ahead of adjusted underlying earnings expectations at the start of April.
"This outperformance for the first four months provides comfort for the H1 outlook despite the loss of retail revenues in Italy that will impact Q2," said Playtech.
"Whilst the Covid-19 pandemic continues to pose challenges and the macroeconomic outlook remains uncertain, given the strong start to the year the board is confident of the company's prospects for the remainder of 2021, while mindful of the possibility for further unexpected lockdowns".
As of 0925 BST, Playtech shares were up 0.70% at 458.40p.