Playtech Closes Italian Snaitech retail shops Due to Coronavirus
A few days ago, Playtech PLC shared an announcement that it will close all of its Snaitech branches in Italy.
The Country on the Lockdown
Italy has been affected by the virus quite badly, with 16 million people currently quarantined. There are now over 7000 cases and more than 350 deaths.
The Italian government has ordered all betting shops, arcades and bingo halls closed across the entire country until April 3rd, 2020.
Acting in accordance with the government’s decree, Playtech will stop with all their activities in the country.
The company stated that it is monitoring Italian COVID-19 developments closely and will update investors as appropriate. The opening date may change depending on how the virus continues to spread in the region.
Affecting Future Performance?
Snaitech is Italy’s biggest sports betting firm which Playtech acquired in April 2018 for €850 million. Last month, Playtech reported its annual results, according to which Snaitech had an “outstanding” 2019.
They’ve recorded a 23% rise in revenue to €1.5bn. And there was an 11% jump in adjusted earnings before interest, tax, depreciation, and amortization to €383.1m.
The company has also recently predicted that its 2020 results are likely to be below market expectations. This is because two of its largest markets have taken a hit from the coronavirus.
The firm said there has been a “material” impact from changes in customer patterns in Asia and Italy.
“The current coronavirus (COVID-19) may present potential risks to our key business generating markets such as Asia and Italy.
While operating at a lower run rate than before, Playtech’s Asia business remains high margin and highly cash generative,” it added.
More on Playtech
Despite all, Playtech continues to uphold its global leading position as a gambling software provider and an essential iGaming partner. This month, the supplier’s extended its long-standing partnership with major operator Betfred.
Moreover, it teamed up with bwin to launch an exclusive All Bets Blackjack Live table.