SBC News Voice of the Sports Betting Industry
Playtech Plc has celebrated a year of strategic and commercial achievements across its B2B and B2C businesses.
Publishing its full-year 2023 accounts, the FTSE250 gambling technology group achieved corporate revenues of €1.7bn, up 7% on FY2022 comparative results of €1.6bn. Of note, year-end trading revealed Playtech’s B2C business generated revenues “exceeding €1bn for the first time”.
The achievement was recognised by the continued growth of Snaitech Italia, generating revenues of €949m (FY2022: €899m) and an adjusted EBITDA of €256m (FY2022: €244m).
The importance of Italian growth was underscored to investors as “the SNAI brand retained its top market share position (retail and online combined measured by GGR) across Italian sports betting brands in FY2023″.
Combined with improved Sun Bingo results, Playtech’s B2C unit generated an adjusted EBITDA of €250m, up 6% on FY2022 results of €235m. Moving onto its B2B business, Playtech reported a healthy performance in regulated markets, as unit revenues grew by 8% to €684m (FY2022: €632m).
B2B’s diverse make-up was celebrated by Playtech, as revenue distribution showed that the Americas brought in €211m. Of this, €13.2m came from the US and Canada, while Latin America contributed €198m.
Revenue from Europe, UK excluded, was €200m, with the UK market itself contributing €126m. Investors were informed about the significance of growth in Latin America, where “Caliplay in Mexico remains the key driver, with WPlay (Colombia) becoming an increasingly large contributor. The early performance of Galerabet was also encouraging, as Brazil takes further steps towards regulating”.
Year trading saw Playtech establish its US market foundations to expand its iGaming B2B services, backed by a live casino facility which opened in Pennsylvania and licensed in 11 states. A strengthened B2B network contributed an adjusted EBITDA of €182m (FY2022: €162m), as…
Playtech’s FY2023 EBITDA stands at €406m, up 12% on FY2022 results of €363m. In concluding the FY2023 accounts, Playtech registered a near three-fold increase in post-tax profits to €105m, matched against FY2022 profits of €40m.
Group CEO, Mor Weizer, commented on the results: “Playtech performed very strongly over the year and delivered Adjusted EBITDA up 9% to €432 million, ahead of previously raised expectations.”
“As well as delivering excellent financial results, the Group made important strategic and operational progress, including our expansion across the US.
“Our B2C division delivered revenues exceeding €1bn for the first time, and Snaitech remains well positioned to benefit from the under-penetration of the online segment, given the strength of the brand, the continuous improvements to apps and technology, and a broadening of its content offering.
“The year’s accounts also provided an update on the dispute with Caliplay over Mexican iGaming market licence and service fees. Despite the disagreement, Playtech has recognised €86.5m within revenue for the year, indicating “confidence in resolving the dispute favourably”.
Of strategic importance, 2024 trading will see Playtech strengthen its balance sheet at a leverage ratio of 0.7x, where the FTSE technology group has secured a €300m bond due in 2028.
Playtech informed investors that 2024 has started on a strong note, maintaining its medium-term adjusted EBITDA targets for both B2B (€200 – €250m) and B2C (€300 – €350m).
Corporate leadership is confident in its ability to pursue organic and inorganic growth opportunities in underpenetrated markets, supported by a strong balance sheet.
Signing off on the 2023 accounts, Chairman Brian Mattingley said: “I would like to take this opportunity to thank the Executive Management team, who continue to demonstrate their agility and resilience in navigating a challenging external backdrop, given the ongoing wars in Ukraine and the Middle East.
“Playtech has built on the strong strategic and operational progress of recent years and continues to cement its leadership across both B2B and B2C sectors. While there were many challenges in 2023, the consistent quality at the core of our business meant that we were able to upgrade our expectations during the year and deliver a strong financial performance.”
