Gambling software company Playtech flags Ukraine hit, profit jumps

(Reuters) -Gambling software company Playtech Plc reported a 25% jump in annual earnings on Thursday that also surpassed its expectations, and said it may have to write off some assets in Ukraine.

The London-listed company also said it was still in talks with an investor group over a potential takeover proposal after shareholders rejected a 2.1 billion pound ($2.84 billion) offer from Australia’s Aristocrat Leisure last month.

“The macro-economic picture is of course uncertain, but we have started 2022 strongly,” said Chief Executive Officer Mor Weizer, as the firm tries to minimise the damage to its business from the crisis in Ukraine, where it employs over 700 employees.

Analysts at Peel Hunt said Playtech’s annual results were better than expected but they remained cautious over the potential impact of the Ukraine conflict and UK regulatory changes.

The company reported adjusted core profit of 317.1 million euros ($348.14 million) for the year ended Dec. 31, compared with 253.6 million euros in 2020.

Shares were up 2.3%, as of 0838 GMT.

($1 = 0.9108 euros)

(Reporting by Siddarth S in Bengaluru; Editing by Sriraj Kalluvila and Subhranshu Sahu)