Playtech’s 2024 Mid-Year Financial Success and Expansion Plans

Playtech plc delivered robust financial results for the first half of 2024, with profits exceeding expectations. The company reported a post-tax profit of €105.4 million, up by 23% compared to the €85.7 million achieved in the same period of 2023. This was largely attributed to its thriving B2B segment and successful market expansions.

B2B Division Drives Growth

The company’s revenue grew by 5% to reach €906.8 million in H1 2024. Notably, Playtech’s B2B division stood out, showing a remarkable 14% revenue increase, hitting €382.2 million. The division’s Adjusted EBITDA surged 38% to €112.3 million, with significant contributions coming from the Americas, where revenue climbed by 42% to €141.6 million.

Playtech’s CEO, Mor Weizer, highlighted the company’s success in executing its B2B strategy. “We’ve executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets,” Weizer commented. He also emphasized the company’s revised agreement with Caliplay, its partner in Mexico, which has contributed significantly to Playtech’s growth in the region.

Playtech made significant strides in the U.S. and Canada, recording a 200% rise in revenue compared to H1 2023. Its expansion was marked by partnerships with major operators, including Rush Street, BetMGM, and DraftKings. Furthermore, Playtech successfully migrated Ocean Casino Resorts to its platform, solidifying its presence in the North American market.

Weizer expressed his optimism about Playtech’s future in North America. “We see a huge opportunity in this market and are pleased to have ed multiple customers with their own growth plans,” he said. Playtech’s partnership with MGM Resorts is particularly noteworthy, as it will allow the company to offer exclusive live casino content from Las Vegas casinos, a move expected to enhance its product offerings.

Sale of Snaitech and Shareholder Returns

In a separate development, Playtech announced the sale of its Snaitech division to Flutter Entertainment for €2.3 billion. Weizer noted that Snaitech has been a significant driver of growth for Playtech, despite facing some challenges from customer-friendly sporting results. He added, “A couple of weeks ago, we announced the sale of Snaitech to Flutter for €2.3 billion and our plan to return €1.7–1.8 billion to shareholders.”

The transaction is expected to close by Q2 2025, after which Playtech plans to return a large portion of the proceeds to shareholders, strengthening its financial position and allowing it to focus on its remaining business operations.

With a strong start to the year, Playtech has raised its full-year outlook, expecting to sur market expectations. The company is also on track to reach its B2B Adjusted EBITDA medium-term target of €200–250 million earlier than anticipated, positioning itself for continued growth in key markets.

Weizer emphasized Playtech’s strategic direction, stating, “We are excited about what the future holds for the remaining Playtech business, and we see plenty of opportunities ahead of us.”

The company has also indicated that its U.S. operations will not be immediately profitable due to heavy investments in the market, but this is seen as a positive indicator of future growth potential. CFO Chris McGinnis reiterated the company’s commitment to the U.S. market, explaining that Playtech’s current focus is on building momentum, which will require further investments in staffing and infrastructure.

Playtech’s H1 2024 results demonstrate the company’s ability to capitalize on its B2B growth and market expansions. With its strategic moves in the U.S., Canada, and Latin America, the company is well-positioned to achieve its long-term goals. As the year progresses, Playtech remains focused on executing its growth strategy while maintaining tight cost control and improving operating leverage.

Weizer concluded, “With a clear strategy, a strong balance sheet, and a great team behind us, we remain very confident in Playtech’s future prospects.” The company’s efforts to solidify its position in key markets and its plans to return value to shareholders underscore Playtech’s commitment to long-term success.

Source:

”Results for the six months ended 30 June 2024”, otp.tools.investis.com, September 30, 2024.