Business
Trading and COVID-19 update
Trading and COVID-19 update.
About this update from Playtech Plc
[{"type":"text","content":"\n \n \n RNS Number : 4590N\n Playtech PLC\n 20 May 2020\n \n \n \n \n Playtech plc\n \n \n ('Playtech' or the 'Company')\n \n \n Trading and COVID-19 update\n \n \n Strong Q1 performance & actions taken to ensure Playtech remains well placed\n \n \n Playtech plc (\"Playtech\") today reports trading for the period from 1 January to 30 April 2020 and provides a further update on the impact of COVID-19 following the Company's previous announcements of 9 March and 19 March 2020. \n \n \n Summary\n \n \n § \n Playtech took early and decisive action in response to COVID-19 and has performed better than envisaged in its update on 19 March 2020\n \n \n \n § \n Strong Q1 with Adjusted EBITDA of €117 million\n \n \n § \n In April 2020 Adjusted EBITDA was €23 million driven by TradeTech in addition to cash preservation measures\n \n \n § \n Monthly cash flow remained positive in March and April (excluding contingent consideration payments and cash from land sale)\n \n \n \n § \n Significant operational progress with existing and new Tier-1 licensees and over 20 new brands added\n \n \n § \n Over €600 million of cash available including fully drawn RCF; covenant light debt\n \n \n § \n Further €14 million received from Snaitech land sale with remaining €36 million expected in early Q3\n \n \n § \n Claire Milne appointed as Interim Chairman to provide continuity and stability\n \n \n Response to COVID-19\n \n \n As COVID-19 continues to impact the global economy, Playtech is doing everything it can to mitigate the effects of the outbreak on its staff, its partners and its business. Management has taken decisive action to ensure the health and wellbeing of its employees and to preserve cash flow, while continuing to provide customers with Playtech's leading technology to deliver what they need. Actions taken include the deferral or cancellation of capital expenditure, strict working capital management, suspension of shareholder distributions, salary reductions across the Company (including 20% for all members of the Board and the executive management team), reduced working hours in certain locations, significant reduction of marketing spending, reduced office and maintenance costs, and the renegotiation of timing of cash outflows including contingent consideration payments due in 2020. \n \n \n Playtech enacted its busi...