Playtech’s B2B Revenue Declines In H1 2019 Due to Snaitech Acquisition

The B2B revenue of Playtech has declined in H1 2019. This was driven by the Snaitech acquisition. The operator contributed €395.8m in revenue for H1, a significant increase on the €61.3m generated from Playtech’s stake in the business in 2018.

Group revenue for the six months to 30 June 2019 amounted to €736.1m, a 69% year-on-year increase from H1 2018, when the supplier reported revenue of €436.5m. Growth was largely down to increased B2C revenue, which soared 345% to €438.2m.

The Snaitech-driven B2C growth was not matched by Playtech’s core B2B operations, with revenue down 9% year-on-year at €265.5m. The decline was due in part to a 24% drop in casino revenue to €129.8m, offset by growth in B2B sports revenue, which rose 27% to €60.6m.

The developer’s significant growth in size and scale prompted by the Snaitech deal contributed to a sharp increase in distribution costs, which almost doubled to €492.8m, and istrative expenses, which grew to €78.9m.

A further charge of €4.6m relating to the impairment of other receivables, which left earnings before interest, tax, depreciation and amortization of €159.8m, up 32.7% year-on-year.

However, the supplier was then hit by significantly increased depreciation and amortization, as a result of the acquisition of Snaitech. Depreciation increased by 52% to €24.9m, of which €8.8m was incurred through Snaitech. Excluding acquired assets, underlying depreciation increased by 6%.

Based on the H1 figures, Playtech has reiterated its adjusted EBITDA projection for the year of between €390m and €415m and expected B2B and Snaitech to perform well for the remainder of 2019.

In May, Playtech partnered with RETAbet, a leading Spanish sports betting operator, providing its casino platform and its live casino suite to RETAbet. Also, Playtech has also made changes to its management, replacing Alan Jackson as Chairman and appointing Anna Massion and John Krumins as the two new non-executive directors.

More on the Brand

Playtech was founded in 1999 and ever since then, its approach has been centered on the continual development of best-of-breed gaming products and content, and its success built upon strong partnerships with their licenses. The company is the world’s largest online gaming software supplier offering cutting-edge, value added solutions to the leading operators in the iGaming industry. With a little over 5,000 employees, in 17 countries, owning 140 global licenses in 20 regulated jurisdictions, Playtech is a giant in its own right.

The company also offers cross-platform management systems, running via a unified information system called the IMS, providing operators with the tools to maximize cross-selling opportunities, player loyalty and yield. The brand’s product suite can be fully integrated into a complete cross-platform offering, enabling the players to access online, broadcast, mobile and server-based gaming terminals through a single .

Source:

“B2B Revenue of Playtech Declines in H1 2019”, Niji Narayan, europeangaming.eu, August 23, 2019.