Playtech H1 revenue hits 5-year high, profit down 96%
Gambling technology group Playtech plc (LSE: PTEC) reported solid financial results for the first half of 2023 as B2B growth and Snaitech’s record performance pushed it towards large gains in revenue.
In a trading update for the six-month period to 30 June 2023, Playtech said revenue was up 8% year-on-year to €859.6 million. Breaking this down, the B2B division – including Snaitech, HAPPYBET and Sun Bingo – made €334.5 million in H1 revenues, up 7% from the same period a year earlier.
Meanwhile, Playtech’s operations in the Americas made notable growth, particularly in Caliente, which helped drive a 43% increase in the region to €99.7 million. The company also expanded its presence in the US, opening with several operators across multiple states.
In Europe excluding the UK, revenue grew by 5% to €96.6 million, with growth seen in several countries, including Poland and Spain. However, revenue from the Netherlands declined due to increased competition and regulatory challenges.
In the UK, revenues were impacted by pre-emptive action on affordability checks, resulting in a 2% decline to €62.9 million. In the B2C segment, Snaitech’s online business performed ahead of expectations with revenue growth of +10% versus 2022, driven by both the retail and online segments. The retail betting sales were up 24% due to pent-up demand after the Fifa World Cup.
Playtech reported a record total adjusted EBITDA of €219.9 million, up 10% year-on-year, with strong performance in both the B2B and B2C segments. However, the reported profit before tax from continuing operations saw a decrease, declining from €103.7 million to €79.6 million, due to the reduction in unrealized fair value changes of derivative financial assets associated with various call options.
Additionally, there was a substantial drop in post-tax profit, plummeting by 96% to €3.1 million from the €71.4 million recorded in H1 2022. This decline 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: “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.”
Playtech achieved significant expansion in the US during the reporting period, having established key partnerships and market launches in multiple states. The London-listed gambling software developer successfully collaborated with prominent operators such as 888, Rush Street Interactive, and PokerStars, facilitating its presence in a total of 10 states across the country.
