Playtech sees adjusted FY earnings slightly ahead of expectations

(Sharecast News) - UK gambling technology maker Playtech said annual adjusted earnings would be slightly ahead of expectations, driven by its business-to-business (B2B) division. The company on Monday said the unit's Americas region posted strong revenue growth in the six months to June 30, while overall cost control also contributed.

In its business-to-consumer business, Playtech's Snaitech unit continued to see underlying growth in wagers against a tough comparative while being negatively impacted by customer-friendly sporting results in Italy, particularly at the start of the year.

Playtech last month confirmed it was in talks with Flutter around the potential sale of Snaitech and on Monday said "discussions continue, although there can be no certainty that any transaction will ultimately be agreed, or as to its terms".

In a separate announcement, Playtech also said it has entered into an agreement with Mexican sports betting firm Caliente Interactive's unit Caliplay, and will take a 30.8% equity stake in Caliente.

Under the terms of the deal, Playtech will have the right to appoint a director to Caliente's board and also entered a revised eight-year B2B software licence and services agreement.

Reporting by Frank Prenesti for Sharecast.com