GamblersPost Gamblers Post is a dedicated news and networking portal in the online gambling industry which features news, opinions, interviews as well as product and software reviews.
Last month, the Estonian company Playtech, based on the Isle of Man, said that the price war in China was the main reason that issued a warning about losses – adjusted net profit Playtech on a regular basis fell by 38% year on year to €83.3 million, and profit before interest and taxes decreased by 13% to €145 million.
“Asia is not going to disappear,” – said Playtech CEO Mor Weizer, who highlighted the content provider-led structure of the region as having presented a unique challenge to the company.
“It is still a growing market; perhaps not at the levels of previous years, but still in the high single digits, I have been told. However, a year ago there were only five companies operating in the market and now there are 30-plus. Low barriers to entry in Asia and a “very price sensitive” environment had led to headwinds, with an influx of newcomers introducing a “highly competitive pricing environment. As the market has developed it has become increasingly competitive at an operator level, but also at a content provider level. Things have stabilised broadly in Asia and we don’t see as many coming into market now”.
Weizer added that Playtech would maintain its pricing structure in Asia whilst focusing on premium services as the company’s management does not believe the pricing models adopted by some competitors in the region are sustainable.
