Photo via Casinotradingpost
A regulatory crackdown that is imposed in Malaysia against online gambling has continued to affect Playtech, a technology provider, following the profit warning that it issued less than three months ago.
The company that is based on the Isle of Man and is founded by Teddy Sagi, a billionaire, said that the customer numbers are not yet able to recover in the Asian nation, where leaders announced last year a major clampdown on gambling companies that are operating there.
The move required Playtech to issue a profit warning last November. The company now says that it has nearly no business in Malaysia in spite of the country making up 5pc of its revenues in 2016.
The said news prompted shares to decline by as much as 13 percent, taking them back towards the low the stock hit on the profit warning last November, although they later cut losses to end the day at 2.9 percent lower.
Profit margins were also affected as its consumer-facing division, which includes Sun Bingo, became a bigger part of the group.
Playtech said that it was in talks with the owner of The Sun, News UK, regarding the problematic bingo proposition which has seen the technology company having to spend more money than what was initially planned on developing the game and attracting some customers.