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Playtech Plc has guaranteed investors that it will achieve its full-year 2024 commercial objectives due to positive H1 results and business outcomes.
H1 trading saw the LSE gambling group achieve corporate revenues of £906m, up 5% from the 2023 comparatives of £859m, as the period trading reflected ‘the strong execution of its B2B business’.
Headline growth saw Playtech report an H1 EBITDA of £233m, up 13% from £207m in 2023, enabling the LSE-listed company to announce adjusted interim profits of £105m, compared to £86m in H1 2023.
As H1 results track above guidance, Playtech is confident that it will secure its “B2B Adjusted EBITDA medium-term target range of €200m to €250m in FY 2024, earlier than anticipated.”
The board of Playtech maintains its pledge to return approximately €1.7bn to €1.8bn to shareholders, following the agreed sale of Snaitech Italia (B2C) to Flutter Entertainment for €2.3bn, with deal terms secured in H2.
Playtech’s commercial outlook is further emboldened by the resolution of its revised technology and services agreement with Mexican joint-venture Caliplay, helping maintain and expand commercial prospects in the Americas. The Caliplay resolution was deemed as a positive outcome for Americas, in which Playtech secured €150m in outstanding services fee.
Group CEO Mor Weizer explained: “This set of results is further proof of the excellent progress we’ve made this year. We’ve executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets, high operating leverage, and tight cost control. We’re also delighted to have agreed a revised strategic agreement with Caliplay, our partner in Mexico, which ensures we are well placed to capture significant growth in the coming years.”
“We announced the sale of Snaitech to Flutter for €2.3bn and our plan to return €1.7bn to €1.8bn to shareholders. Snaitech has been a key part of Playtech’s growth in recent years, and the team delivered another solid performance in the first half, despite the impact of customer-friendly sporting results. We are excited about what the future holds for the remaining Playtech business, and we see plenty of opportunities ahead of us.”
A breakdown of divisional units saw Playtech achieve strong B2B growth, with revenue rising 14% to €382m, combined with a 32% increase in EBITDA to €112m.
The Americas region played a significant role, delivering a 42% increase in revenue, driven by Caliplay and contributions from Wplay in Colombia, NorthStar in Canada, and Parx in the US. Expansion in the US and Canada led to a remarkable revenue increase of over 200%. Additionally, EBITDA margins improved by 510 basis points, benefiting from operating leverage and stringent cost control measures.
The firm’s B2C performance remained stable, with revenue flat at €532m, as Snaitech’s revenue saw a slight decline of 1%, impacted by tough comparatives and customer-friendly sporting results.
Further B2C assets such as HAPPYBET reported a loss of €2m, as Playtech confirmed plans to close its Austrian business in H2 2024, following the conclusion of Snaitech’s sale.
British B2C brand Sun Bingo and other segments experienced strong growth, increasing revenue by 17% to €39m, yet adjusted EBITDA results dragged to €2.8m, due to increased spending on promoting new brand launches.
H2 will see Playtech strengthen its Americas drive, where the tech group envisions strong prospects for its Live Casino unit. A strategic partnership was also signed with MGM Resorts to deliver exclusive live casino content.
Additionally, the SaaS business saw revenue increase by 44% to €33m, keeping the company on track to meet its medium-term revenue target of €60m to €80m.
Mor Weizer, CEO, concluded: “Our plan to accelerate our presence in the US and Canada is already delivering, with revenues trebling in the period. We see a huge opportunity in this market and are pleased to have supported multiple customers with their own growth plans, while also delivering the first major milestone in our partnership with Hard Rock Digital. With US customers now able to experience Playtech-powered games in multiple states, soon our customers outside the US will get the opportunity to play games streamed directly from Las Vegas as part of our new agreement with MGM Resorts.
“We have started the second half of the year well and are on track to be within our B2B Adjusted EBITDA medium-term target range in FY 2024, earlier than expected. With a clear strategy, a strong balance sheet, and a great team behind us, we remain very confident in Playtech’s future prospects.”
