PLAYTECH H1 REVENUE REACHES 5-YEAR HIGH, 96% LOWER PROFIT

In its trading update for the six-month period ending on June 30, 2023, Playtech reported an 8% year-on-year increase in revenue, reaching €859.6 million. To break it down, the B2B division, which includes Snaitech, HAPPYBET, and Sun Bingo, generated €334.5 million in H1 revenues, marking a 7% rise compared to the same period the previous year.

Playtech also experienced notable growth in its operations in the Americas, particularly with Caliente, which contributed to a 43% revenue increase in the region, reaching €99.7 million. The company expanded its footprint in the United States by partnering with several operators in multiple states.

In Europe, excluding the UK, revenue grew by 5% to €96.6 million, with several countries, including Poland and Spain, witnessing growth. However, revenue from the Netherlands declined due to heightened competition and regulatory challenges.

In the UK, revenues were affected by proactive measures related to affordability checks, resulting in a 2% decline to €62.9 million. In the B2C segment, Snaitech’s online business exceeded expectations with a revenue growth of +10% compared to 2022, driven by growth in both the retail and online sectors. Retail betting sales saw a 24% increase due to pent-up demand following the FIFA World Cup.

Playtech reported a record total adjusted EBITDA of €219.9 million, reflecting a 10% year-on-year increase, with strong performance in both the B2B and B2C segments. However, reported profit before tax from continuing operations decreased from €103.7 million to €79.6 million, primarily due to reduced unrealized fair value changes of derivative financial assets associated with various call options.

Furthermore, post-tax profit experienced a significant decline, plummeting by 96% to €3.1 million from the €71.4 million recorded in H1 2022. This drop was attributed to a strategic investment of €79.8 million made during H1 2023 in Hard Rock Digital, which resulted in Playtech acquiring a minority ownership stake in the company.

CEO Mor Weizer commented on the results, stating, “Our success in the period was driven by our diversified portfolio, spanning B2B and B2C, in some of the fastest-growing regulated markets around the world. Having laid the groundwork in the US, we are growing our offering across multiple states and are confident in our future prospects following the landmark agreement with Hard Rock Digital. Additionally, we further cemented our leadership in LatAm with Caliente in Mexico and Galera.bet in Brazil. Snaitech in Italy enjoyed another strong period, with the management team continuing to leverage their retail presence to grow the online business.”

During the reporting period, Playtech achieved significant expansion in the US, establishing key partnerships and launching in multiple states. The London-listed gambling software developer successfully collaborated with prominent operators such as 888, Rush Street Interactive, and PokerStars, expanding its presence to a total of 10 states across the country.

Original Story by Finance Feed