Playtech Plc cites confidence that it will achieve its full-year 2023 financial and strategic objectives as its business continues to benefit from B2B and B2C growth.
Providing a Q1 trading update, the FTSE250 gambling technology group expects its FY2023 adjusted EBITDA result to slightly surpass its current consensus expectations. Yet Playtech notified investors that “current growth rates are expected to moderate somewhat later in the year as a result of certain tailwinds in Q1”.
A breakdown of business segments saw the B2B division achieve ‘commendable successes’ in the first four months of the year, primarily driven by growth in regulated markets, helping Playtech strengthen its dominant igaming technology supplier presence in Latin America, with Mexico’s market leader, Caliente, sustaining its upward trajectory.
“In early 2023, we took a pivotal step in strengthening our footprint in the US by signing a landmark agreement with Hard Rock Digital. This partnership has set the pace for our accelerated US strategy,” said Mor Weizer, CEO of Playtech. He added that Playtech invested $85m in the deal, acquiring a minor equity stake.
Further fuelling Playtech’s B2B growth is the Live Casino business offering and the improved margin gains which have benefited the performance of Playtech SaaS systems. Both have successfully harnessed the rapid expansion in the market and delivered substantial growth.
The B2C division has not been left behind, largely propelled by Snaitech. The revival of football activities after the World Cup, coupled with a strong demand, has created a favourable environment for growth, especially in the retail segment. The online segment, too, continues to show promise.
“There has been a tailwind at the start of the year for our B2C division, particularly from the resumption of football. It’s given our retail segment a significant boost,” said Weizer.
The strategic and operational initiatives in the HAPPYBET business are also beginning to pay off, with the EBITDA loss showing a slight decrease in the trading period compared to the previous year.
In line with its commitment to corporate governance, Playtech has announced board changes. Ruby Yam will join the Board as an Independent Non-executive Director from 1 June 2023, while John Krumins will be stepping down in September 2023.
“Given the momentum in the business, we are confident in Playtech’s ability to leverage the exciting growth opportunities across both B2B and B2C divisions over the medium term,” Weizer concluded.