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Wednesday, April 29, 2020

Playtech Systems evaluating its financial position

Sebas Bastian.

Playtech Systems, parent company of Island Luck, is evaluating its financial position over the next two days, given that its formerly announced six-week payroll continuation since the shutdown ends tomorrow, Island Luck Chief Executive Officer Sebas Bastian told Guardian Business yesterday, adding that the company, with a million-dollar monthly operational cost, has seen an 80 percent decline in revenue.

Bastian noted that if the government had added dates to its phased opening plan, that would have helped the company in terms of cash planning.

Playtech announced at the start of The Bahamas’ shutdown due to the novel coronavirus (COVID-19) pandemic, that it would pay its staff for six weeks.

That time has run out and the government has extended its emergency orders until the end of May, without announcing any changes for gaming houses.

“I’m using the next two days to re-evaluate,” said Bastian.

“We were always going to use the 30th as a checkpoint to see where we are with the virus, where we are with the economy opening back up. We’re working over the next few days to determine the way forward and part of that decision was we were hoping to obviously get some word as to when the reopening was going to occur, so we could align our affairs with that.

“Besides staff costs, we rent 80 percent of our stores. I haven’t heard a landlord yet offer me assistance. I have rent, I have staff, I have utilities companies still charging. I have all the bills as if I was open, but I’m closed.

“So if we look at our affairs it’s not just staff-centric, we have to look at it in a more global way, because our monthly operating costs is in the millions and with revenue being down almost 80 percent, we have to have a full picture of where we’re going, to determine how we get there.”

Bastian said the well-being of Island Luck’s more than 700 staff is paramount. He said the company set aside cash for natural disasters, which is now being used to help employees and others.

“The well-being of our staff is always going to be of the uttermost importance and so we’re going to do everything we can to make sure we can offer as much support to them as we can,” Bastian said.

“But there’s a side to this business that exists besides them and we really need to have some dates to be working towards, so that we can make certain projections and be in good footing.”

Island Luck negotiated a deal with the National Insurance Board, so that it can pay the unemployment benefit of its more than 700 employees if that time comes, in return for a credit later on.

The post Playtech Systems evaluating its financial position appeared first on The Nassau Guardian.



source https://thenassauguardian.com/2020/04/29/playtech-systems-evaluating-its-financial-position/

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