Playtech Plc has achieved “elevated targets” of a transformative 2024, as the FTSE250 technology group returns to a pure-play B2B identity.
Full-year 2024 trading featuring the B2C activities of Snaitech, saw Playtech achieve corporate revenues of €1,791.5m, up 5% on FY2023 results of €1,706m.
Despite year trading being disrupted by €2.4bn sale of Snaitech to Flutter Entertainment (sanctioned in Q3), Playtech achieved ‘excellent operating results’ generating an FY2024 adjusted EBITDA of €480m (FY2023: €432m) – above raised expectations detailed to market.
The earnings result is deemed as vital, as Playtech accelerates is strategic shift to become a single-focused B2B technology supplier, disposing of Snaitech and re-engaging in new terms with Caliplay Mexico, its biggest services contract.
Mor Weizer: Playtech
CEO Mor Weizer said: “2024 was a landmark year for Playtech. We successfully reached an agreement to sell Snaitech to Flutter Entertainment, delivering significant value to our shareholders while enabling Playtech to refocus predominantly on its core strengths as a pure-play B2B business.”
“Additionally, we are pleased to have secured a revised strategic agreement with Caliplay, our partner in Mexico, providing greater certainty and a strong foundation for future growth.”
The B2B segment of Playtech performed above expectations as revenues grew by 10% to €754.3m and adjusted EBITDA increased by 22% to €222m as the B2B unit’s operating margin expanded to 29%.
The growth of B2B was driven by outstanding momentum in the Americas, particularly the US and Canada (+126%), and continued strength in Latin America. Additional drivers included, strong Live Casino growth (+24%), and new strategic deals with DraftKings, Hard Rock Digital, MGM Resorts, and FanDuel.
Of strategic importance, Playtech highlighted the SaaS business growth as the segment reported €80m in revenue (+59%) and exceeded the medium-term target of €60-80m at the upper end of the range. The model provides low-friction platform access for smaller operators, enabling cross-selling and diversifying revenue across multiple brands and geographies.
The B2C segment of Playtech generated total revenues of €1,052.7m (+2%) and adjusted EBITDA of €258.4m (+3%) maintaining a robust performance ahead of key disposals.
Italian giant, Snaitech generated €956m in revenue (+1%) and €265.7m in EBITDA (+4%), contribution driven by 3% online growth, as the €2.4.bn sale to Flutter is on course to complete in Q2 2025.
German subsidiary HAPPYBET continued its loss-making status of €11.8m, whilst Sun Bingo (UK) increased revenue by 7% but experienced lower EBITDA because of higher marketing expenditure and new affordability tests.
In Q4, Playtech announced that it had begun a negotiations to sell its HAPPYBET subsidiary in the coming months to a German venture.
Playtech’s adjusted post-tax profit rose 42% to €223.5m, which is due to strong underlying business performance, particularly in B2B, and resumed payments from Caliplay.
During H2, Playtech resolved its joint venture dispute with Caliplay by agreeing to a revised structure, securing a 30% equity stake in Caliente Interactive – a newly established US-based entity that will manage the JV contract and facilitate all payments between the parties.
Closing FY2024 accounts, Playtech’s reported post-tax profit showed a loss of €24m, down from a €105m profit in FY23. The reported loss was driven by €119.7m in impairments, a €57m deferred tax asset write-down, and lower gains on financial instruments.
Playtech moves into a new B2B existence after reducing its corporate net debt by half to €142m and receiving a new €225m credit facility from the FTSE firm.
Leadership has introduced new medium-term targets of €250–300m in adjusted EBITDA and €70–100m in free cash flow for its continuing operations. Following the completion of the Snaitech sale, the company plans to pay out €1.7-€1.8 billion to shareholders through a special dividend.
Brian Mattingley: Playtech
Outgoing Chairman Brian Mattingley stated: “The sale of Snaitech marks a transformational moment for Playtech, enabling us to deliver exceptional shareholder value through a special dividend of up to €1.8bn, as well as reposition the Group for long-term growth as a pure play B2B leader.
We believe we have the right balance sheet, a clear strategic direction and accelerating growth in high-growth markets to capitalise on the numerous opportunities that lie ahead.”
