Playtech, an award-winning provider of casino content, has just announced impressive numbers for Q1 2020, despite the ongoing COVID-19 pandemic. The company generated a robust adjusted EBITDA of €117 million in the first quarter with April’s adjusted EBITDA standing at €23 million.
Since the outbreak of the coronavirus, Playtech has been coming up with a range of effective measures to tone down the effects of the pandemic on the company’s business. Some of the cushioning measures that Playtech has taken so far include the suspension of capital expenditure, deferral of shareholder distributions, less operational costs, stringent working capital management, and even 20% pay cuts for its management to ensure that it has enough liquidity to ride the harsh Coronavirus wave.
Generally, the Q1 EBITDA of €117 million was majorly driven by TradeTech in addition to cash preservation measures put in place. TradeTech performed well as a result of increased market volatility and sales volumes recording an adjusted EBITDA of over €45 million in the first quarter of the fiscal year. TradeTech also gained from the excellent performance of Snaitech, and the good sporting results also boosted its success. Right now, Playtech has over €600 million in liquid cash available even though its B2B sports business is suffering a monthly loss of €3m in adjusted EBITDA.
The strategies that the company has recently deployed in response to Covid-19 have led to better results than the management anticipated in the last update held on 19th March 2020. During the trading update, Claire Milne was appointed as Interim Chairman, replacing the outgoing Chairman Alan Jackson who had steered the company to greatness for the past 7 years.