Playtech overcomes UK hurdles to achieve 2022 bumper results

Playtech Plc declares that it has achieved all corporate objectives of an ‘exceptional year’ for the FTSE250 technology group. 

Publishing its FY2022 results, Playtech achieved a record revenue result of €1.6bn, up 33% on like-for-like 2021 comparatives of €1.2bn.

Year trading saw Playtech B2B and B2C units continue to register growth within regulated markets, generating respective revenue results of €632m (+11%) and €983m (+48%).

Group CEO Mor Weizer, commented: “2022 was a year of considerable strength for Playtech, in which we delivered record revenues and EBITDA, ahead of market expectations.

“All parts of the business contributed to this performance, with B2B powered by Europe (ex-UK) and the Americas, and B2C’s impressive performance underpinned by Snaitech’s continued strength in the Italian market in both retail and online.”

Excluding the UK, Playtech detailed that it had registered B2B growth across all European territories, helping the unit achieve an adjusted EBITDA outcome of €160m, up 15% on 2021’s results of €139m.

Of distinction, a record B2B outcome was achieved “against the backdrop of the war in Ukraine where we employ over 700 colleagues (c.10% of our workforce).”

Further operating highlights saw Playtech expand its B2B operations in Mexico via a partnership with Caliente and establish its long-awaited US presence in nine US states, launching new clients Hard Rock Digital and Parx Casino.

B2C growth was led by Snaitech Italia, which achieved a 39% increase in EBITDA to €254m (FY2021: €183m) – driven by its continued post-pandemic in which “Snaitech maintained its number one position by brand across retail and online sports betting in Italy in 2022.”

However, the shine dampened for the B2C unit, as it reported a post-integration EBITDA loss of €11m for its HappyBet Italian sportsbook business.

Despite recording 5% revenue growth to €65m, The Sun UK white-label bingo business saw its adjusted EBITDA decline to €2m (FY2021: €6.7m) – accounting for a €10m impairment charge due to “terminating an onerous contract.”

2022, saw Playtech conduct the sale of its Finalto FX unit for a cash consideration of $228m, a transaction completed in July 2022 which generated a reported underlying profit of €15m.

The tech group continues to divest non-core assets in which it disposed of “100% of Statscore to LSports, and simultaneously acquired a 30.89% stake in LSports, a provider of data to sportsbooks and media companies to increase our footprint in the growing sports data market.”

Closing its FY2022 accounts, Playtech declared consolidated profits of €202m (FY2021: €113m), as its group ‘cash balance’ is strengthened to  €426m as of 31 December 2026.

Weizer underlined strengthened prospects across all markets for 2023, adding:  “Strategically we have also continued to deliver, executing the successful sale of Finalto continuing our simplification strategy, and making great progress in North America with the launch of the IMS platform with Parx Casino in Pennsylvania and having signed several significant new deals including Golden Nugget, WynnBET, Resorts and 888.

“We have started the new financial year well and announced the signing of the landmark transaction with Hard Rock Digital, and in spite of the continued macro-economic and political uncertainty, remain confident in our future prospects, as well as our ability to deliver value to all our stakeholders in a sustainable and responsible way.

Following an exceptional 2022. Playtech governance has projected the new mid-term B2B adjusted EBITDA goal of €200 –250m. Concurrently, it maintains its medium-term adjusted EBITDA guidance for Snaitech at €300-350m – however, unit performance is exposed to ongoing macroeconomic impacts.