Playtech announces share buyback programme

Gaming software development company Playtech has announced a share buyback programme of up to €50m.

The group said the launch of the buyback programme reflects its “continued confidence in the growth and prospects of the business and its high cash generation”.

The purpose of the buyback is to cut the company's share capital by means of purchasing its ordinary shares from time to time using existing cash resources of up to €50m, to make market purchases of up to 6m ordinary shares.

Playtech said the buyback programme has no impact on its M&A strategy, with its pipeline remaining healthy.

The company also said it continues to trade in line with its expectations, adding that the latest proposals from the Financial Conduct Authority to tighten rules around contract for difference products are not expected to have a significant impact on its financials division.

“Playtech has always aimed to operate its financials division at the very highest standards of regulation and therefore confirms that last week's publication by the Cyprus Securities and Exchange Commission and today's proposals from the Financial Conduct Authority are not expected to have a material impact on Playtech's financials division.”

At its interim results in August, the group reiterated that it is cognisant of the need for an efficient balance sheet with high cash balances consistently augmented by cash from operations. It upped its interim dividend and announced the payment of a special dividend, along with the introduction of a progressive dividend policy.

At 1120 GMT, the shares were down 1.5% to 814.50p.