Publishing its 2019 interim results (period ending 30 June), Playtech Plc has underlined its confidence in delivering on full-year expectations and strategic targets.
Recording a 68% increase in group revenues to €736 million (H12018: €436m), Playtech highlighted growth across its ‘Core B2B Gambling’ division and the integration of SNAITECH Italia assets as key performance drivers.
The FTSE250 technology group detailed that its B2B division has benefited from a cost control programme which has increased gambling margin to 29% (H12018: 19%).
The update sees Playtech maintain a core strategic priority of securing new commercial contracts, with its B2B division adding ten new brands as customers during the trading period.
Playtech further highlighted that its B2B division has expanded key technology contracts with GVC Holdings, whilst delivering on provisions for customers operating in the re-regulated Swedish marketplace ‘from day-1’.
At a B2C level, Italian asset SNAITECH achieved ‘no. 1 market share in retail and online combined in June and July 2019, reporting an adjusted EBITDA contribution of €75 million.
The positive results, including a 31% increase in adjusted EBITDA to €190 million (H12018: €145 million), led the company to reaffirm its 2019 earnings guidance range of €390-415 million.
However, Playtech declared an adjusted net-profit of €71 million, down 15% on corresponding H1 2018’s €83 million, attributed to higher regulated market taxes and costs attached to its 2018 SNAITECH acquisition.
Alan Jackson, Chairman of Playtech, commented: “Playtech’s combination of scale and leadership in technology continues to deliver growth and strategic progress in our core gambling businesses. In H1 this continued progress has driven Group regulated revenue to a new high of 87% (H1 2018: 69%).
“In our B2B business double-digit growth in regulated markets outside of the UK has been accompanied by landmark new licensee wins in key regulated markets, laying the foundations for future growth. In our B2C business Snaitech continues to go from strength to strength demonstrating impressive growth momentum in a key market.
“The continued strength of the core business has allowed Playtech to continue its flexible shareholder returns policy, today declaring an additional buyback programme alongside an interim dividend.”