The board of Playtech Plc has stated confidence in achieving the group’s full-year 2022 commercial and corporate objectives following ‘an excellent start to year trading’.
Issuing a snapshot trading update, the FTSE250 gaming technology group revealed that positive Q1 trading had generated unaudited EBITDA results of more than €100 million, with the ‘run rate continuing through to April’.
Strong EBITDA results are attributed to B2B and B2C unit growth, in which Playtech has benefited from the continued business (online-&-retail) recovery of its Snaitech Italian gambling subsidiary.
B2B growth has been led by the momentum of its Caliplay JV in the Mexican and American markets and further buoyed by a strong performance across its wider B2B operations, including Live Casino contracts.
Providing an update on corporate developments, Playtech stated that there had been ‘positive discussions’ with Hong Kong investment fund TTB Partners regarding a potential buyout.
However, as yet, “there can be no certainty as to whether an offer for the company will be announced or the terms on which any offer might be made.”
Elsewhere, despite facing tough capital market conditions, Playtech continues to explore a possible transaction which would allow the Caliplay venture to enter the US wagering market on an accelerated basis.
Settled corporate developments see Playtech on schedule to offload its Finalto FX trading unit by Q2 2022 as two of the four required regulatory clearances have been approved.
Moving forward, 2022 trading will be bolstered by a strengthened commercial pipeline that has signed multiple new partnerships in the US and launched several operators in Canada following the opening of the Ontario market.
“The excellent start to the year gives the Board great confidence in the prospects for FY 2022. As would be expected, the Board remains cautious and focused given that we are at an early stage in the year, combined with the uncertain macro backdrop due to the pandemic and the war in Ukraine.“ Playtech’s market statement read.
“The Board is also conscious there cannot be any certainty that the strength across the business so far will be repeated throughout the remainder of the year.
“That said, the company’s performance to date and current trends in the business positions the company very well and the Board would hope to be able to update the market further as we progress through the year.”