Playtech downgraded its earnings guidance, blaming intense competition in Asian markets. The company said it now expected adjusted Ebtida for 2018 to be in the range of €320m-to-€360m.

The guidance excluded a €42m one-off gain relating to the sale of shares in Ladbrokes and GVC. Playtech said it sold its 3.4% stake in GVC on 7 June for €222m. Playtech said its current revenue run rate in Asia was ‘materially below’ both the average in the 2017 second half, and the average which was expected for the 2018 second half.

If the current run rate continued, Playtech’s expected revenue from Asia would be around €70m lower than original expectations. ‘Given that the downturn in Asia has been relatively sudden and taking into account Playtech’s centralised cost base, the vast majority of this revenue loss will drop through to adjusted Ebitda,’ the company said.

Consolidating Snaitech from June 2018 will contribute around €80m of adjusted Ebitda to Playtech’s group forecasts for 2018, based on Snaitech’s current market consensus, it added. ‘Clearly the recent trading performance in Asia is disappointing,’ chief executive Mor Weizer said.

‘We have taken steps to further support our partners in the region and we will continue to work to preserve our position in the face of an increasingly competitive environment.’