Playtech defends chairman’s 17pc pay rise despite fall in profits

THE chief executive of gambling software provider Playtech has defended its chairman’s pay rise, despite issuing two profit warnings in the past year.

Playtech’s first-half profits fell by a quarter as it continued to grapple with tough conditions in Asian markets.

The FTSE 250 company’s revenues were up 4pc to €436.5m (£393.4m) in the six months to June but would have risen 35pc were it not for its Asian business, which has suffered due to surging competition from new Chinese competitors and a gambling crackdown in Malaysia.

Chairman Alan Jackson was given a 17pc pay rise to £450,000, Sky News reported on Wednesday.

Chief executive Mor Weizer justified the increase: “Alan is an invaluable and committed member of the Playtech team.

“In the five years that he has served as chairman he has never received a pay rise until now.”

Reported pre-tax profits were up 36pc to €124m – mostly because of changes in the value of its investments. But excluding those and other one-offs and noncash benefits, profits were down 24.5pc.

Playtech has been attempting to shift its focus away from unregulated markets, including China and Malaysia, to more developed markets where gambling is explicitly permitted in law.