Playtech, the leading provider of technology and content for the online gambling industry, has reported robust results for the first half of 2024, highlighting its successful expansion across key markets, especially in the U.S. and Canada. Total revenue for the six-month period ending June 30, 2024, increased by 5% to €906.8 million, with adjusted EBITDA up 11% to €243.0 million. These gains were driven by strong performance in the company’s B2B section, notably within the Americas area.
B2B Segment Fuels Growth
Playtech’s B2B division continued to carry out exceptionally properly, with revenues rising 14% year-over-year to €382.2 million. Adjusted EBITDA for this section jumped by 38% to €112.3 million, with working leverage and value management cited as key contributors. “We’ve executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets,” stated CEO Mor Weizer.
A significant driver of B2B progress has been Playtech’s growth within the U.S. and Canada, the place income elevated over 200% in comparison with H1 2023 (PGCB Annual Report remaining). Partnerships with main operators corresponding to DraftKings, BetMGM, and Rush Street Interactive contributed to this success, alongside the migration of Ocean Casino Resorts onto Playtech’s platform in New Jersey. The firm additionally expanded its relationship with PENN Entertainment, launching in Michigan and Pennsylvania.
Weizer emphasised the potential in these markets, noting, “Our plan to accelerate our presence in the U.S. and Canada is already delivering, with revenues trebling in the period.” The firm sees the U.S. as a key progress alternative and expects additional features from its current settlement with MGM Resorts to provide dwell on line casino content material from two Las Vegas Strip resorts.
Strategic Moves and Snaitech Sale
In a major strategic shift, Playtech has agreed to sell its Snaitech division to Flutter Entertainment for €2.3 billion. This transaction is predicted to shut by Q2 2025, and the corporate plans to return between €1.7 billion and €1.8 billion to shareholders through a particular dividend following the sale.
While Snaitech’s income declined barely by 1% to €483.6 million because of customer-friendly sporting outcomes, the division retained its main market share in Italy’s retail and on-line betting sectors. Despite the dip, Snaitech stays a powerful performer, contributing considerably to Playtech’s total B2C income.
Playtech’s B2C division, which incorporates manufacturers corresponding to Sun Bingo, reported flat income at €532.4 million in comparison with H1 2023. However, Sun Bingo and different B2C segments noticed 17% progress, pushed by the launch of latest manufacturers and elevated buyer engagement(PGCB Annual Reportfinal).
Continued Investment and Outlook
As a part of its continued growth technique, Playtech is investing closely in its U.S. operations. The firm plans to considerably improve headcount in its U.S. and Canadian divisions, anticipating continued demand for its dwell supplier and gaming options.
Despite the excessive ranges of funding, Playtech stays on monitor to satisfy its medium-term B2B Adjusted EBITDA goal of €200 million to €250 million for FY 2024, sooner than anticipated. “We are more excited than ever about the U.S. opportunity, but I wouldn’t say that profitability is imminent,” stated CFO Chris McGinnis. Nevertheless, the corporate’s robust steadiness sheet and money technology present a stable basis for future progress(PGCB Annual Reportfinal) .
With the sale of Snaitech and its concentrate on increasing its footprint in North America, Playtech is poised for additional success. “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,” Weizer concluded.
Source:
Excellent H1 2024 performance; B2B on track to meet medium-term target in FY2, otp.instruments.investis.com, September 30, 2024.
