Strong B2B performance drives 73% revenue growth for Playtech

The onboarding of Snaitech, coupled with positive trading across its B2B operations, contributed heavily to a strong performance for Playtech throughout H1 2022. 

Publishing its interim report this morning, the betting and gaming supplier outlined a revenue increase of 73% to €792.3m (H1 2021: €457.4m), coupled with EBITDA of €203.8m – a 64% rise on the 2022 figure of €124.1m.

Overall, the group’s B2B division proved to be the dominant growth driver throughout the first six months of the year, with revenue for this sector standing at €312m. This represents a year-on-year growth rate of 17%. 

Meanwhile, B2C revenue benefited from white label operations as well as the acquisition of Snaitech, recording total revenue of €487.3m (€196.6m and EBITDA of €126.6m (€52m). Specifically, Snaitech’s EBITDA stood at €137.7m, a growth rate of 154% to €51.8m. 

A vertical breakdown of the Italian operator saw its online business perform ‘ahead of expectations’ – although Playtech did acknowledge ‘modest revenue declines’ of 5% against the previous quarter. 

This was despite the reopening of retail sites and the extension of retail betting licences by a further two years until June 2024, at a cost of €23m. Although, the extension of Gaming Machines rights have been extended at no cost until June 2023. 

Further hurdles included HappyBet’s operations remaining loss-making, with Playtech implementing ‘strategic and operational measures’ to counter this. On the other hand, B2C white label revenue, including Sun Bingo, increased by 3% to €31.7m, although EBITDA fell by 3% to €100,000.

“I am delighted with the positive start that the group has made in the first half of 2022, delivering a financial performance ahead of our expectations with significant strategic and operational progress made against our objectives,” said Mor Weizer, Playtech CEO.

“Our success in the period was powered by our B2B business in the Americas and Europe, alongside yet another excellent contribution from Snaitech. We continue to make great strides in executing our US strategy, launching with Parx Casino in Pennsylvania, signing several exciting deals with leading Global and US brands, and progressing additional licence applications. 

“The Americas remain one of the Group’s biggest growth drivers, with continued strong revenue growth in Mexico as well as Brazil complemented by new launches and partnerships in the US, Canada and Peru.”

A specific market by market breakdown saw the Americas and Europe, excluding the UK, listed as the ‘standout performers’ – the latter growing by 39% to €92.2m due to an ‘impressive start’ at Holland Casino in the re-regulated Dutch market.

Across the Atlantic, Americas revenue rose by 37% to €69.8m, driven by Caliente’s performance in Mexico, the launch of the IMS platform with Parx Casino in Pennsylvania, deals with the liesk of Golden Nugget, WynnBET, Resorts and 888 and the launch of NorthStar in Ontario. 

Lastly, it was not all smooth sailing in Asia, where revenue declined by 22% due to competitive pressures and the impact of lockdowns in some countries. This resulted in a debt provision of €15.4m due to collection delays. 

Post-H1 developments included the sale of the Finalto FX business for €52m – and the prospects for the firm to have a new owner remains on the table, as Irish businessman Edide Jordan reconsidered his bid in July. 

“The sale of Finalto was completed in July 2022, representing a significant step in our stated strategy to simplify the Group and focus our efforts on the high-growth B2B and B2C gambling markets. We remain well placed to capitalise on the exciting market opportunities ahead, driving sustainable growth for the benefit of all our stakeholders,” Weizer continued.

“We have navigated significant disruption and uncertainty in the period due to well-reported geopolitical tensions and inflationary pressures. For this, I would like to extend my sincere thanks to all of my Playtech colleagues for their hard work in the face of adversity. 

“Throughout 2022, we have gone to great lengths to support our Ukrainian colleagues and their families through the tragic events which continue to unfold in the country. We remain in close contact with our employees in Ukraine and will continue to do everything we can to ensure their safety and that of their families.

“The macroeconomic outlook remains uncertain given geopolitical tensions and inflationary pressures, however we have seen our excellent performance in H1 continue into H2 and expect to see continued strong results from both our B2B and B2C businesses. As such, we are confident about Playtech’s prospects for the remainder of 2022 and beyond.”