Online gambling technology provider/operator Playtech says its 2019 earnings won’t match its forecasts due to its struggling financial trading division.
On Friday, Playtech issued a trading update for the four months ending October 31, during which its TradeTech financial services unit – which offers forex and contracts for difference (CFD) via Markets.com – had experienced “highly challenging” trading conditions during September and October.
These challenges will result in TradeTech performing “well below management’s expectations” and Playtech warned investors that its overall adjusted earnings for 2019 are “now expected to be a little below current consensus.” Investors frowned at the news, pushing Playtech’s share price down 2.5% by the close of Friday’s trading.
Playtech added that it is “evaluating all options” for its TradeTech unit, which like other firms offering CFDs, binary options and forex trading has come under increased regulatory scrutiny in recent years. Playtech is also considering the sale of its Casual and Social Gaming business in an effort to streamline its overall structure.